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Activist investors part ways with TransAlta prior to AGM


April 22, 2019  


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A pair of activist investors agitating for changes at TransAlta Corp. terminated their partnership ahead of the power company’s annual general meeting.

Mangrove Partners and an entity controlled by C. John Wilder’s Bluescape Energy Partners told Bloomberg News in a regulatory filing that they would terminate their cooperation agreement.

The pair, which collectively owned 10.1 per cent of TransAlta, had said they were prepared to launch a proxy fight at the company to replace five directors on the board. They also tried unsuccessfully to have regulators review a $750 million investment by Brookfield Asset Management Inc. in TransAlta to determine whether additional disclosure and second vote on the investment should be required, among other matters.

It would be challenging for either investor to push ahead with their proxy fight at the meeting after the pair failed to file proper paperwork with regulators to pursue the challenge. They didn’t say in the filing whether they had abandoned their fight.

Mangrove President Nathaniel August threatened earlier this month to call an a special shareholder vote after the annual meeting if TransAlta failed to meet its demands on additional disclosure around the Brookfield deal and a separate vote on the matter.

It’s unclear whether Mangrove, which owns 7.1 per cent of TransAlta on its own, will push ahead with those efforts after that AGM on Good Friday.

(Bloomberg News)