Brookfield Renewable has announced that it intends to make an offer to acquire all of the issued and outstanding common shares of Western Wind Energy for a cash consideration of $2.50 per share.
On July 30, Western Wind announced that it was seeking a buyer, and on Aug. 28, Brookfield Renewable acquired 16.2% of Western Wind's outstanding common shares in a single transaction and approached the company regarding participation in its sale process.
However, Western Wind says that Brookfield refused to sign a customary non-disclosure and standstill agreement that was entered into by other auction participants. On Oct. 24, Western Wind announced that the auction process was progressing as planned, with a limited number of bidders having been invited to conduct a second round of very extensive due diligence, as well as the addition of new participants, as the proxy battle caused at least eight weeks of delay in the auction process.
According to a statement released by Western Wind, some of the informal offers received from other auction participants in that second round were higher than the offer intended to be made by Brookfield. However, Western Wind stresses that those were just initial expressions of interest and that there is no guarantee that a formal offer or binding agreement will be made with those companies.