March 25 (Reuters) - TransAlta Corp said on Monday it is set to receive C$750 million ($559.1 million) from investor Brookfield Asset Management that the Canadian power company will use towards becoming a clean energy producer by 2025.
The investment from Brookfield Renewable Partners, majority owned by the Canada-based asset manager, will be convertible to an ownership in TransAlta’s hydro assets in Alberta in the future, the company said in a statement. Brookfield currently owns about 5 percent in the company.
The asset manger has also agreed to buy shares in the company to increase its stake to 9 percent, TransAlta said.
Calgary-based TransAlta has been under shareholder scrutiny lately for recording losses over the past two years. Last week, shareholders Mangrove Partners and Bluescape Energy Partners sought changes in the company’s management structure.
As part of the latest investment deal with Brookfield, TransAlta said it will add Harry Goldgut and Richard Legault, both nominated by the investment firm, to its slate of directors for election at the annual meeting of shareholders on April 26.
TransAlta said it will spend C$350 million of the investment to advance its coal to gas transition strategy, up to C$250 million to buyback shares over three years, and the remainder to develop existing and new projects. ($1 = 1.3415 Canadian dollars) (Reporting by Debroop Roy in Bengaluru; Editing by Shinjini Ganguli)