Western Wind Energy Corp., the renewable-power developer that won a proxy fight in September, reached a four-year high after Brookfield Renewable Energy Partners LP announced a plan to bid for the company.
Western Wind, for sale since July 29, gained 13 percent to C$2.75 at the close in Toronto, the highest since July 21, 2008. Hamilton, Bermuda-based Brookfield, which owns 16 percent of Western Wind, offered C$2.50 ($2.51) a share in cash, according to an announcement after markets closed on Nov. 23.
“Due to level of interest and offer price, we believe more offers will be presented,” Ian Tharp, a Toronto-based analyst at CIBC World Markets Inc., said in a note today.
Brookfield’s offer, more than twice Western Wind’s closing price on July 27 before the sales process started and 3 percent higher than the Nov. 23 close, is “too low,” Western Wind Chief Executive Officer Jeff Ciachurski said in a statement today, pledging to get a “better price” for shareholders.
Interest from other companies currently assessing Vancouver-based Western Wind implies “a value significantly greater than that which Brookfield intends to offer,” Ciachurski said.
Western Wind, which operates wind farms in California and Arizona, won a proxy battle with San Francisco shareholder Savitr Capital LLC for board control in September. Brookfield’s bid, open until Jan. 28, needs approval from shareholders other than Brookfield owning more than 50 percent of the company.