Western Wind Energy Corp. - Update on process with Brookfield
TSX.V Symbol: "WND"
OTCQX Symbol: "WNDEF"
Issued and Outstanding: 69,820,125
VANCOUVER,
Jan. 14, 2013 /CNW/ - Western Wind
Energy Corp. - (the "Company" or "Western Wind") (TSX Venture
Exchange - "WND") (OTCQX - "WNDEF") wishes to announce an update to
its efforts with both Brookfield Renewable Energy Partners L.P.
("Brookfield") and Western Wind's sales process.
Western Wind is in the unique position of being
both a substantial renewable energy producer and a public company.
The vast majority of the plus 55,000 megawatts of installed wind
capacity in North America are
owned by private companies or subsidiaries of regulated
utilities. Under an optimum and less complex private company
sales process, assets similar to that of Western Wind, take, from
initiation to completion of sale, at least 9 - 12 months. In fact,
Brookfield's adjoining wind farm
(to Windstar) went through a two year sales process before
Brookfield purchased the remaining
50% interest. Western Wind has had the added delay of a three month
proxy battle and has had to deal with the "wet blanket"
interference of an ongoing hostile bid from Brookfield.
Western Wind is in charge of running this
expeditious sales process on behalf of all the stakeholders and
cannot give preferential treatment to an insider. Brookfield's interest is in opposition to that
of the rest of the shareholders as it logically seeks to acquire
the remaining 84% of the Company at the lowest possible
price. The date of January
28th, or any other date presented by Brookfield, is only relative to Brookfield's self aligned interest and does
not serve to benefit an increased price offer.
With reference to comments from the CEO of
Brookfield Renewable Energy Partners, specifically Richard Legault's commentary describing our
recent credit facility of $25 million
and the 400,000 share purchase warrants exercisable at $2.50 per share issued as a bonus to the lender,
it is important to note that this was negotiated prior to the sales
process. More importantly, Mr. Legault should have provided
our shareholders in the Brookfield
press release or in its offer circular more details about the
extensive prior dealings and negotiations between Brookfield and Western Wind that led to a
financing term sheet proposal in October
2011 from an affiliate of Brookfield. In that proposed term sheet,
Brookfield offered to lend
$60 million to Western Wind in two
phases: a first phase of $25 million
and a second phase of $35 million. In
addition to fees and interest exceeding 13%, Brookfield requested a bonus of 15% of the
entire Company in the form of 9 million share purchase warrants at
a price indicative of the share price in October, 2011.
Western Wind rejected the above Brookfield offer, even after the request by
Brookfield was reduced to 6
million share purchase warrants.
Regarding Mr. Legault's comment that "the
Brookfield offer was made without
due diligence", nothing could be further from the truth.
Principally, in the fall of 2011, Western Wind met with
representatives of Brookfield and
its affiliates a number of times concerning the business of Western
Wind and how the two companies might work together. At which time,
extensive confidential material non-public information about
Western Wind was provided. Those meetings lead to the financing
proposal referred to earlier in this press release. Western Wind
has requested that the Ontario Securities Commission review the
conduct of Brookfield and consider
whether Brookfield should have
provided a valuation opinion along with its offer. It is Western
Wind's view that a valuation opinion should have been provided in
connection with the Brookfield
offer.
Our strategy going forward is to complete
financial close on Yabucoa as this event will add substantial value
to the shareholders of Western Wind. Financial close by our
lending group is deemed to have removed all the risks associated
with the project and implies a substantial increase in value.
This facilitates not only attracting a much better price for the
company as a whole, but an even greater price by the splitting of
assets to multiple buyers.
Additionally, Western Wind's four operating
projects bring in enough revenue every month to substantially
reduce debt and increase shareholder value. Western Wind will
be sold in an expeditious and sound manner and time is on the side
of the Western Wind shareholder.
We strongly believe in Mr. Legault's objective
of having a Board supported approval of an acceptable Western Wind
bid and the door is still wide open between Brookfield and Western Wind.
ABOUT WESTERN WIND ENERGY CORP.
Western Wind is an independent vertically
integrated renewable energy production company that owns and
operates wind and solar generation facilities with 165 net MW of
rated capacity operating 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".
Western Wind owns and operates three wind energy
generation facilities in California, and one fully integrated combined
wind and solar energy generation facility in Arizona. The three operating wind
generation facilities in California are comprised of the 120MW
Windstar, the 4.5MW Windridge, both in Tehachapi, and the 30MW Mesa facility near
Palm Springs. The facility
in Arizona is the Company's 10.5MW
Kingman integrated solar and wind
facility. The Company is further developing wind and solar
energy projects in California,
Arizona, and Puerto Rico.
ON BEHALF OF THE BOARD OF DIRECTORS
"SIGNED"
Jeffrey J. Ciachurski
President & Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
This news release contains certain statements
that may be considered "forward-looking statements, such as
references to the intended sale of Western Wind and its assets.
Forward looking statements are statements that are not historical
facts and are generally, but not always, identified by the words
"expects", "plans", "anticipates", "believes", "intends",
"estimates", "projects", "potential" and similar expressions, or
that events or conditions "will", "would", "may", "could" or
"should" occur. The forward-looking statements in this press
release include statements regarding the value of a potential sale
of the Company based on expressions of interest received from
auction participants, alternative sales discussions with third
parties and potential transactions resulting from such discussions.
The forward-looking statements included in this press release are
based on reasonable assumptions, including that the expressions of
interest and discussions with third parties may result in a higher
potential sales price and that the Company will be able to
successfully negotiate and complete a sale with a third party.
Factors that may cause results to vary from anticipations include
the risk that the Company may not be able to successfully negotiate
a sale on terms more favourable than pursuant to the Offer and even
if it is able to negotiate such a sale, that may not be able to
satisfy applicable conditions, including receipt of requisite
approvals, or complete the transaction. Although Western Wind
believes the expectations expressed in the forward-looking
statements are based on reasonable assumptions, such statements are
not guarantees of future outcomes and actual results may differ
materially from those contained in forward looking statements.
Forward looking statements are based on the beliefs, estimates and
opinions of Western Wind's management on the date the statements
are made. Western Wind undertakes no obligation to update these
forward-looking statements in the event that management's beliefs,
estimates or opinions, or other factors, should change, except as
required by law.
SOURCE Western Wind Energy