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Western Wind Energy Corp V.WND



TSXV:WND - Post by User

Post by Intravires69on Feb 09, 2013 2:13pm
197 Views
Post# 20963267

Valuation Opinion

Valuation Opinion

It did/does concern me that there has been no valuation opinion provided by the Board and no explanation why not.  This has been pointed out by BEP numerous times so it should not come as a shock.  And there are analysts that have said $2.50 is fair except that it does not include the extended tax credits or Yabucoa. However, they likely did not have one done because they wanted to wait for Yabucoa to close so it could be inluded.   Or, the feedback thet have got from the auction is that Yabucoa closing will result in  a better price. Clearly WND has been told by the bidders that they will want to take WND private. That is why WND is saying they want Brookfield to say that they will not bid again.

A bidder needs 90% of the tendered shares to relatvely easy enact legislation which will allow them to require the remaining shares. Because BEP owns 16%, this process cannot  enacted, unless of course BEP tenders its shares as has been mentioned.  If the bidder acquires less than 90% but more than 2/3 of the shares a shareholder meeting can be held to vote on  a merger and squeeze out the rest of the shareholders but on the same terms. This is a longer and more costly step and with not ncessarily a guaranteed outcome.  So,IMHO the bidders want to ensure they will be able to acquire greater than 90% of the shares which wll include BEP's.  So, BEP has to be out of th epicture.  No bidder will have an interest in WND just to be a majority shareholder.  Minority shareholders are pain sin the you know what.  So, if BEP backs out, they will likley want to sell their shares as well.   

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