February 24 (Renewables Now) - Water Island Capital LLC, owner of 4.08% of Pattern Energy Group Inc’s (NASDAQ:PEGI) shares outstanding, on Monday addressed what it considers untrue and misleading claims made by Pattern Energy's board in regard to the planned acquisition of the wind and solar parks operator.
The open letter was in response to Pattern Energy's latest press release in which it defended the agreed deal with Canada Pension Plan Investment Board (CPPIB).
The investment fund manager cited several analyst comments on the transaction value in support of its claim that the price of USD 26.75 (EUR 24.73) per share offered by CPPIB does not offer fair value to Pattern Energy's shareholders.
According to the open letter, Pattern Energy's claim that if the company is not acquired by CPPIB it would need to raise additional funds in the public market, contrasts with earlier management comments about the good financial health of the company and the various options for funding it has.
As per the comments on Pattern Energy peers with elevated share prices, which according to the board could in some cases be explained with “unique events," Water Island said that even when those peers were excluded, the rest chosen by financial advisor Evercore in its fairness opinion in the proxy statement have seen a similar increase in share prices as originally stated.
The open letter also questioned Pattern Energy board's claim that the deal with CPPIB was a result of a robust process, mainly because of a number of details undisclosed by the parties.
The full letter can be found here.
Water Island concludes by advising Pattern Energy shareholders to vote against the deal on March 10.
(USD 1.0 = EUR 0.924)