Canadian Hydro Developers, Inc.
TSX : KHD

Canadian Hydro Developers, Inc.

September 22, 2009 08:00 ET

Canadian Hydro Receives Multiple Proposals: TransAlta No Longer in the Lead

CALGARY, ALBERTA--(Marketwire - Sept. 22, 2009) - Canadian Hydro Developers, Inc. ("Canadian Hydro" or the "Company") (TSX:KHD) received on September 21 a number of proposals following the data room process resulting from the unsolicited offer received from TransAlta Corporation (the "TransAlta offer") on July 22, 2009.

"We have had a robust data room process, with interest from many parties. TransAlta no longer has the leading proposal," said Dennis Erker, Chairman of the Board of Directors of Canadian Hydro. "Our attention now turns to a careful evaluation of the various proposals. We intend to take the necessary time, working with our independent advisors, to perform a thorough analysis. We will pursue the course of action that is in the best interests of Canadian Hydro and its shareholders."

The Special Committee of Canadian Hydro's Board of Directors is currently reviewing and evaluating these proposals. The Company will update the market as appropriate as this process continues, but there can be no assurance that a transaction will take place.

The Board of Directors of Canadian Hydro continues to recommend unanimously that shareholders of Canadian Hydro reject TransAlta's unsolicited offer ("TransAlta offer") of $4.55 cash per share, which is now due to expire Friday October 2, 2009, following three extensions of the 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. To reject the TransAlta offer, shareholders do not need to take any action. Anyone who has already tendered Common Shares to the TransAlta offer can withdraw those Common Shares by contacting his or her broker or Laurel Hill Advisory Group at the number listed below.

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 EcoLogoM 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 take-over proposal by TransAlta.

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