Brookfield Renewable Energy Partners says it has bought up enough outstanding shares to acquire a controlling interest in Western Wind Energy Corp., bringing to an end repeated takeover attempts for the embattled developer.
In a $92 million transaction, Brookfield acquired 35.4 million shares of Western Wind through WWE Equity Holdings Inc. for $2.60 per share. Brookfield will now own 46.8 million common shares of Western Wind, representing 66.1% of the issued and outstanding common shares.
"We are very pleased with the successful outcome of our bid and look forward to incorporating these complementary energy assets into our renewable power portfolio," says Richard Legault, Brookfield's president/CEO, in a statement. "This will increase our operating wind capacity in the attractive California market by 56% to nearly 430 MW, while the company’s other operating and development-stage assets are expected to create further value over time."
According to its website, Western Wind Energy owns and operates three wind projects in Tehachapi, Calif., and a combined wind and solar project in Kingman, Ariz. Western Wind also notes it is developing additional wind and solar projects in California, Arizona and Puerto Rico.
Brookfield notes that it has extended its offer to March 7, to allow more Western Wind shareholders to tender to the offer. If it gets 90% of the shares, Brookfield notes it will be able to force the rest of the stock to be handed over.
Western Wind’s executives have strongly opposed the Brookfield Renewable takeover, saying there were other parties interested in buying the company, and they expected to get a higher price than what Brookfield was offering.
As the controlling shareholder, Brookfield says it has written Western Wind's board requesting an "orderly transition."