The offer of Can$4.55 (US$4.22) per share remains unchanged, as does the recommendation by CanHydro’s board that shareholders reject the bid as being undervalued.

CanHydro said talks with other prospective bidders are underway with due diligence to confidentially check data.

The company had noted recently that other offers may happen but nothing has yet appeared. At that time the ASC refused to remove the Shareholder Rights Plan but TransAlta noted that, in initially extending its offer to today, the decision would be reviewed depending on developments.

In a statement, TransAlta said it was ‘pleased to have the certainty’ that CanHydro’s shareholder shield ‘will be withdrawn’ on 21 September.

However, CanHydro said that the termination of the Shareholder Rights Plan was only in respect of that takeover offer, and otherwise remained.

Canadian Hydro Developers has 694MW of net capacity, another 185MW nearing completion and 1624MW in development, including the 100MW Dunvegan run-of-river project.

The takeover bid was made on 7 July.

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CanHydro accepts increased offer from TransAlta