Vancouver’s Western Wind Energy Corp. continues its battle to prevent a group of shareholders, represented by investment manager Savitr Capital LLC, from creating a dissident board in response to the company’s July 29 announcement that it would be put up for sale.
Western Wind announced this morning it has received numerous proposals from M&A advisory firms. The largest of these firms anticipate an average 18-week timeline from beginning of engagement to final sale. During this 18-week process, Western Wind will complete the financing and begin major construction of its Yabucoa Project in Puerto Rico. The largest M&A firms’ proposals require that the board and the CEO present Western Wind’s extensive assets to the potential purchasers.
The company stated today that the only group that can accomplish these tasks accurately and efficiently is the current board and CEO of Western Wind.
“Western Wind has spent the past 12 years accumulating and building these assets. The only constant during this 12-year period is the CEO, Jeff Ciachurski, who has been with the company since its inception in January 1998. The remaining board has been with Western Wind, on average, for 10 years.
“Every land asset, contract, power purchase agreement, piece of generating equipment, and business relationship has originated with the CEO and the current board.”
Included in the final sale price will be the 30-megawatt Yabucoa Solar Project, which is almost ready for financial close and the beginning of major construction.
The company said there are a few complex and delicate business relationship issues that need to be resolved prior to financial close, which is scheduled to happen well within the 18-week selling period.
“These delicate and complex relationship issues will never come to a conclusion without the present board and CEO. They definitely will never happen with Savitr’s dissident slate of directors.”
According to a report, the Yabucoa asset has a net present equity value of $115 million ($1.53 per share fully diluted).
The company said “Savitr’s dissident slate of directors and unknown management team cannot bring Yabucoa to financial close and therefore all of Western Wind’s shareholders will be deprived of at least $1.53 per share, if not more.”
