Western Wind Energy Corp. - further update to Brookfield bid
Friday, Jan 25, 2013
Western Wind Energy Corp. - (the "Company" or "Western Wind") (TSX Venture Exchange - "WND") (OTCQX - "WNDEF") wishes to advise of the following disclosures with Brookfield.
On Thursday, January 17, 2013, Western Wind received a call from Rothschild, our financial advisor, stating that their Chairman received a call from a very senior official at Brookfield, requesting a meeting in Toronto as soon as possible, to discuss a revised increase in their bid.
A meeting was held in Toronto on the morning of Saturday, January 19, 2013 with the CFO of Western Wind, Rothschild and four (4) members of Brookfield. In that six hour meeting, Brookfield requested, and was given, a very detailed and forensic look at the Yabucoa Project and several other key financial matters. Western Wind delivered the essential financial details in the same manner as it would, for our lenders.
Following this disclosure, various ideas were discussed by both parties, on how to increase the value of the existing $2.50 bid by Brookfield. Suggestions made by all parties included: increasing the bid as an all cash bid; increasing the bid in two (2) components comprising of $2.75 cash plus spinning out our Kingman wind and solar production facility and our Arizona development assets into a separate Spinco; and lastly, an increased cash bid with a series of contingency payments to pay additional payments to Western Wind shareholders, based on completion of certain milestones going forward.
After the conclusion of the meeting, Brookfield said that they would have a proposal delivered to Western Wind by the end of Sunday night, as this was a condition for Western Wind attending to their offices and giving up very detailed forensic information on Yabucoa. It was also very important to get this new information into the revised Supplementary Directors' Circular, which was scheduled to be released on Monday, January 21, 2013.
On Sunday night, an email was sent by Brookfield indicating that they would not have anything by the evening of Sunday.
On Monday, January 21 st, Western Wind issued its "no recommendation" circular. Another email was sent from Brookfield stating that they would not have anything ready by 2pm West Coast time on Monday, which was past the printing and mailout deadline of our Circular.
On January 22, 2013, an email was received stating that Brookfield was proposing $2.50 cash plus the 42 MW DC Yabucoa Project to be spun out into a new public company and had requested that we prepare a Heads of Agreement and an Exclusivity Agreement. Western Wind management and its Special Committee began preparing the documentation regarding some of the proposals presented by Brookfield.
Due to the fact that Brookfield is a significant insider to the Company, and has had access to the Company's very detailed financial information that neither the public nor any other party has, it was clearly a material obligation by the Board of Western Wind, to release this update by way of a News Release, and to change the "No Recommendation" to a "Rejection" because of the impending new arrangements, which in any outcome, would be higher than $2.50.
The CEO of Western Wind was not part of and did not attended the meetings in Toronto or any subsequent discussions with Brookfield. The Independent Committee elected to send it's CFO to work with Brookfield and Rothschild.
On January 23, 2013, we received a letter from Brookfield stating that "Brookfield would issue its January 24 th news release if Mr. Ciachurski continued to be involved in the process and that if we, as a Board, rejected the current outstanding $2.50 cash bid from Brookfield."
ABOUT WESTERN WIND ENERGY CORP.
Western Wind is a vertically integrated renewable energy production company that owns and operates wind and solar generation facilities with 165 net MW of rated capacity in production, in the States of California and Arizona. Western Wind further owns substantial development assets for both solar and wind energy in the U.S. The Company is headquartered in Vancouver, BC and has branch offices in Scottsdale, Arizona and Tehachapi, California. Western Wind trades on the TSX Venture Exchange under the symbol "WND", and in the United States on the OTCQX under the symbol "WNDEF".
SOURCE: Western Wind Energy