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LS Power, GIP propose CAN$7.75bn acquisition of TransAlta21/07/2008. Source: AltAssets. 
 LS Power Equity Partners and Global Infrastructure Partners have made a non-binding proposal to acquire power generation and wholesale marketing company TransAlta Corporation for CAN$39 per share, in a deal worth an approximate CAN$7.75bn.
The proposal represents a 21 per cent premium above the closing price of the company's stock on 18 July 2008.
According to the firms' proposal, the transaction would be funded with approximately CAN$6bn of equity, supplemented with a CAN$2bn debt facility, provided by Credit Suisse.
LS Power is associated with New York-based Luminus Management, according to a statement. The company is a development, investment and asset management group, focused on power generation facilities fuelled by natural gas, coal and renewable resources.
LS Power currently owns a nine per cent stake in TransAlta.
James Bartlett, president of LS Power, speaking on behalf of LS Power and GIP, said, 'We have a great deal of respect for TransAlta, its employees, its board of directors, its management team led by Steve Snyder, and its heritage. Furthermore, we have confidence in the underlying value proposition that TransAlta's business provides.
'To that end, we believe that our proposal for TransAlta provides shareholders with compelling value. It also provides continuity for the company's customers, employees, management and communities where it operates,' he added.
GIP targets investments in the energy, transport, water and waste management sectors. Earlier this year, the firm closed its inaugural fund on $5.64bn.
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