Algonquin Power and Utilities makes takeover bid for British Columbia-based Western Wind Energy at C$2.50/share; Western's management says company valued at more than C$5/share, recommends shareholders ignore 'low-ball offer'
VANCOUVER, British Columbia
October 11, 2011
– Western Wind Energy Corp. - (Toronto Venture Exchange - "WND") (OTCQX - "WNDEF"), Western Wind Energy Corp. ("Western Wind Energy") is not pleased to report that Algonquin Power and Utilities ("Algonquin"), has made an unsolicited bid. Management and the Board of Directors is of the opinion that this is an extremely low-ball bid to purchase 100% of the common shares of Western Wind Energy for $2.50 per share, either all cash or a combination of cash and Algonquin common shares.
Western Wind Energy has conducted two major independent valuations by both DAI Consulting and Deloitte regarding our major assets. The DAI Report values Western Wind Energy, on a fully diluted basis, at over $5.06 per share and the Deloitte Report is extremely consistent in its asset valuations of Western Wind.
A large US-based corporation, with a substantial US tax appetite, is the only entity that can offer the full value to the Western Wind shareholders, based on the DAI and Deloitte reports. This is due to the fact that there is over $300 million of tax shield available to a large taxable, US entity.
Algonquin is clearly not in a position to offer anywhere near a price that can internally utilize both the tax shield and offer Western Wind Energy shareholders, the best value.
Upon review of the Algonguin balance sheet, it is evident that Algonquin has raised almost $900 million in equity but yet, has lost over $400 million of that, as reflected in the its balance sheet, as a deficit.
Western Wind Energy, on the other hand, has started with less than $1 million in capital, with a $0.35 per share IPO price and has consistently outperformed and outgrown Algonquin, in leap and bounds. Western Wind Energy is at the cusp of going on-line in three months, with its flagship, 120 MW Windstar Project, which means sigificant returns for the shareholders, well above the Algonquin offer.
Western Wind Energy's management strongly recommends that its shareholders ignore Algonquin's low ball offer and for all shareholders to clearly study and analyze the Algonquin financial statements.
About Western Wind Energy Corp.
Western Wind Energy Corp. (OTCQX: WNDEF; TSX.V: WND) trades in the United States on the OTCQX under the symbol "WNDEF" and on the Toronto Venture Exchange under "WND". Western Wind is a vertically integrated renewable energy production company that currently owns over 500 wind turbines and a solar field with 165 MW of rated capacity either in production or in construction in the States of California and Arizona. Western Wind further owns substantial additional development assets for both solar and wind energy in California, Arizona, and Ontario, Canada; and in the Commonwealth of Puerto Rico.
Western Wind is in the business of owning and operating wind and solar energy generating facilities. Management of Western Wind includes individuals involved in the operations and ownership of utility scale wind energy facilities in California since 1981.
ON BEHALF OF THE BOARD OF DIRECTORS
Jeffrey J. Ciachurski
President & Chief Executive Officer