Western Wind board approves launch of sale process
Jul 30, 2012 - Canada-based clean power producer Western Wind Energy Corp (CVE:WND) said Monday that its board of directors had decided to put the company and all of its assets for sale effective immediately.
The decision was the result of a compromise between the chief executive's plan to carry on with the building of the company's assets for another two years before launching a sale, and the interests of shareholders who have seen the share price drop due to unregulated market participants trading.
The sales process will include the achievement of several milestones, including financial completion and kick off of major construction on the 30-MW Yabucoa solar photovoltaic (PV) project in Puerto Rico; reaching an agreement on the balance of the cash grant proceeds from the treasury; and completion of a mezzanine loan facility worth USD 25 million (EUR 20m) to be used to repay higher-cost corporate notes.
Western Wind has already launched talks and expects to receive proposals within the next two weeks from merger and acquisition (M&A) advisory firms. It will have 10 days after receiving the proposals to select two M&A advisors. The latter will solicit qualified bidders among large US energy companies, regulated US electrical utilities and integrated US oil and gas companies that already have interests in renewable energy.
The assets to be sold will include all of the company's four production facilities together with all revenues and cash flow from them; the fully funded contingency accounts; the Yabucoa project and its cash flow, assets and power purchase agreement (PPA); all of the company's landholdings; the application for a USD-45-million cash grant for Yabucoa; all advanced stage projects; the entire development pipeline; and USD 450 million in tax depreciation upon completion of the Yabucoa project.