Canadian Hydro Developers, Inc.
TSX : KHD

Canadian Hydro Developers, Inc.

August 27, 2009 19:08 ET

Canadian Hydro Comments on TransAlta's Announcement That It Has Extended Its Unsolicited Offer

Canadian Hydro Board of Directors continues to reject TransAlta's opportunistic and inadequate offer

CALGARY, ALBERTA--(Marketwire - Aug. 27, 2009) - Canadian Hydro Developers, Inc. ("Canadian Hydro") (TSX:KHD) confirms that it is aware of the announcement by TransAlta Corporation ("TransAlta") that TransAlta has extended until September 11, 2009 its unsolicited offer to acquire Canadian Hydro for $4.55 per share in cash. The Board of Directors of Canadian Hydro continues to unanimously recommend that shareholders of Canadian Hydro reject TransAlta's unsolicited offer ("TransAlta offer").

Canadian Hydro issued a Directors' Circular on August 4, 2009, which lists seven reasons why shareholders should reject the TransAlta offer, with full detail explaining each. The Board of Directors of Canadian Hydro is reaffirming its recommendation that shareholders reject the TransAlta offer. In summary, the reasons for rejection include the following:

- The TransAlta offer is inadequate, as it does not reflect Canadian Hydro's current value or the value of its extensive growth prospects.

- The TransAlta offer of $4.55 per Common Share is below current trading prices and is lower than premiums typically paid in Canadian take-over offers. Research analysts have stated that the offer is inadequate.

- The timing of the TransAlta offer is opportunistic and is prejudicial to Canadian Hydro and its shareholders.

- The TransAlta offer continues not to be a permitted bid under Canadian Hydro's Shareholder Rights Plan.

- Superior proposal delivering greater value for shareholders may emerge. Canadian Hydro's Board of Directors is pursuing alternatives to maximize shareholder value. A comprehensive and detailed data room containing confidential proprietary information on the business, assets and operations of Canadian Hydro was opened on July 30, 2009. A number of interested parties have come forward and entered into confidentiality agreements in order to access the data room, and management has engaged in extensive discussions with several of these parties.

- Each of Canadian Hydro's financial advisors has delivered a written opinion stating that the offer is inadequate from a financial point of view.

- The TransAlta offer is highly conditional and is not a firm offer.

To reject the TransAlta offer, shareholders do not need to take any action.

The Directors' Circular was mailed to all shareholders on August 6, 2009. The Circular is also available on the Canadian Hydro website, at www.canhydro.com, and has been filed on SEDAR and with Canadian securities regulators. Shareholders are advised to read the Canadian Hydro Directors' Circular in full, as it contains important information regarding the TransAlta offer. Inquiries concerning the information in the Directors' Circular should be directed to Laurel Hill Advisory Group, the information agent retained by Canadian Hydro, North American toll free at 1-888-534-1152, collect 416-637-4661 or via email at assistance@laurelhillag.com

About Canadian Hydro

"Recognized as one of Jantzi/Maclean's Top 50 Responsible Corporations in Canada"

Canadian Hydro is committed to Building a Sustainable Future®. The Company is the largest and most diversified developer, owner, and operator of 21 renewable energy generation facilities in Canada totaling net 694 MW of capacity in operation, 160 MW in and nearing construction, and 1,660 MW in development. The renewable generation portfolio is diversified across three technologies (water, wind, and biomass) in the provinces of Alberta, British Columbia, Ontario, and Quebec. This portfolio is unique in Canada as all facilities are certified, or slated for certification, under Environment Canada's EcoLogo(M) Program.

Advisory Respecting Forward-Looking Statements:

This news release contains certain forward-looking information and statements within the meaning of applicable securities laws.

The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "confident", "might" and similar expressions are intended to identify forward-looking information or statements. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. The forward looking information or statements in this news release relate to, but are not limited to, statements with respect to the results of any evaluation of the take-over proposal by TransAlta and any course of action Canadian Hydro may undertake in response to the takeover proposal by TransAlta. In addition, there can be no assurance that superior proposals delivering greater value for shareholders will emerge.

The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated and described in the forward-looking statements. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements. The forward-looking information and statements contained in this news release speak only as of the date of this news release, and the Company assumes no obligation to publicly update or revised them to reflect new events or circumstances, except as may be required pursuant to applicable securities laws.

Contact Information

  • Canadian Hydro Developers, Inc.
    Investor Relations
    Kathy Boutin, Chief Financial Officer
    (403) 298-0256
    Email: KBoutin@canhydro.com
    or
    Canadian Hydro Developers, Inc.
    Media Relations
    Darryl Warren, Manager, Marketing & Communications
    (403) 806-8143
    Email: DWarren@canhydro.com
    Website: www.canhydro.com