Brookfield Renewable Energy Partners LP is proceeding with its hostile takeover bid for Western Wind Energy Corp. after getting a favourable ruling from the Ontario Securities Commission.
The OSC said Friday it has denied an application by Western Wind seeking a cease-trade order and a formal valuation of its shares.
Brookfield says it will now proceed with its “best and final offer” of $2.60 per share for the Vancouver-based renewable energy producer. The all-cash bid is set to expire Feb. 11.
The Bermuda-headquartered concern also reiterated there would be no further increase in its bid price, which it earlier hiked from $2.50 per share after being spurned by Western Wind management.
The company also said in a statement that it wanted to remind shareholders that Western Wind traded for $1.19 per share before Brookfield began its attempt to negotiate a friendly takeover.
Even in the early days of the sale process before Brookfield’s initial investment — “when shareholders expected a sale transaction” — the closing price was $2.09, Brookfield said, adding that no other offer has come forward in the two months since its initial bid.
Brookfield Renewable said late last month that it had the support of shareholders with 22 per cent of Western Wind common stock. However, the offer is conditional on it receiving at least 50 per cent of the outstanding stock it doesn’t already own.
Western Wind had argued that an independent valuation was needed because Brookfield’s offer constituted an “insider” bid since it owned more than 10 per cent of the company’s stock. Brookfield said that despite its holdings, it remained an “outsider in all material respects.”