DBRS Maintains TransAlta Power, L.P. Under Review with Developing Implications

DBRS has maintained the stability rating of TransAlta Power, L.P. (TA Power) Under Review with Developing Implications, following TA Power’s announcement that Cheung Kong Infrastructure Holding Limited (CKI) and TA Power have entered into a support agreement for CKI to acquire all of the outstanding units of TA Power in an all-cash transaction valued at approximately $629 million ($8.38 per unit), excluding debt. The offer is a result of the strategic review process conducted by the Independent Committee of the Board of Directors (Independent Committee) of the general partner of TA Power announced on May 22, 2007. Please refer to the DBRS press release issued on May 22, 2007.

The Board of Directors of TA Power has unanimously approved the proposed transaction and recommends that the unitholders accept the offer, which represents a 16% premium over the October 12, 2007, closing price. The transaction is conditional upon unitholder acceptance of not less than 66.6% and subject to receiving all necessary regulatory approvals and other customary closing conditions. CKI is a Hong Kong-based infrastructure company.

DBRS is maintaining TA Power’s rating at Under Review with Developing Implications, with the expectation that if the CKI acquisition proceeds, the rating will be discontinued.

Note:
All figures are in Canadian dollars unless otherwise noted.