Press release from Business Wire
Savitr Capital Sends Letter to Western Wind Shareholders
<p class='bwalignc'> <b>Responds to Misleading Company Statements and Outlines Facts Regarding Effort to Maximize Value for All Shareholders</b> </p> <p class='bwalignc'> <b>Urges Shareholders To Vote <span class='bwuline'>GREEN</span> Proxy <span class='bwuline'>FOR</span> All Independent Board Nominees</b> </p>
Tuesday, September 11, 2012
Savitr Capital Sends Letter to Western Wind Shareholders08:30 EDT Tuesday, September 11, 2012
TORONTO (Business Wire) -- Savitr Capital, LLC (“Savitr”), a significant shareholder of Western
Wind Energy Corp. (TSX Venture Exchange: WND) (OTCQX: WNDEF) (“Western
Wind” or “the Company”), today sent a letter to Western Wind
shareholders responding to a barrage of misleading statements made
recently by the Company, highlighting the value destruction under CEO
Jeff Ciachurski's leadership and the lack of skills present on the
current board of directors to successfully maximize value for all
shareholders.
Savitr encourages shareholders to carefully review its letters, Proxy
Circular and other materials and vote only their GREEN proxy by
no later than September 20, 2012 at 5:00 pm (Vancouver Time), in advance
of the proxy voting deadline.
Voting Instructions: If you have any
questions and/or need assistance in voting your shares, please call
Kingsdale Shareholder Services at 1-866-229-8166 or 1-416-867-2272
(collect calls accepted).
The full text of the letter follows:
Dear Fellow Shareholders:
Savitr is writing to you to dispel the misleading letter that Western
Wind recently sent you. Through a laundry list of baseless attacks and
desperate maneuvering, Western Wind's Board and management are once
again clouding the issues for their own gain.
Our campaign for change is purely about maximizing shareholder value.
The current Board and management of Western Wind have had their chance
to create value for shareholders…and they failed. The Company is now
scrambling to save face and has created illusory arguments to distract
you. This letter, like all of the materials that we have sent to
shareholders, is being sent as dissident communications. All of our
materials are clearly marked and Western Wind's suggestions otherwise
are plainly tactical. It appears that Western Wind is desperately
seeking ways to try and disenfranchise shareholders.
WE URGE YOU TO STAY FOCUSED ON THE FACTS
All parties agree that a sale of the Company is the best course of
action for Western Wind shareholders. But with a deplorable track-record
of creating value for shareholders, it is imperative that a new board of
directors is installed to oversee a credible sale process that has the
best chance of success for both completion and the maximization of
shareholder value. The current Board and management are claiming to have
a magical advantage in leading a sale process. Where were these
skills over the past few years when the Company made similar promises
and failed to follow through?
Consider the facts:
WESTERN WIND'S HISTORY OF EMPTY PROMISESIn March 2011, Western Wind announced the hiring of
Rabobank to arrange financing for the Windstar wind project and the
Yabucoa solar project. This was the last we heard about that
initiative.
In October 2011, the Company rebuffed Algonquin Power &
Utilities Corp. after it showed interest in acquiring Western Wind.
In November 2011, when asked about the Algonquin offer,
Jeff Ciachurski responded that “[he'd] rather be building wind farms.”
(South Asian Post, Nov 8, 2011) Shouldn't his duty to shareholders
come first?
In fall of 2011, the Company engaged financial advisors
for a strategic review –nothing ever came of this.
In May of 2012, the Company announced a questionable and
significantly dilutive acquisition and only withdrew it after negative
shareholder response. Reeling from broad criticism, the Company
cobbled together a makeshift sale process in July. This haphazard
announcement came without the
customary disclosure of a financial advisor, details regarding the
establishment of a special committee or any other thoughtful plan on
how this sale would be completed.
EGREGIOUS COMPENSATION AND POOR CORPORATE GOVERNANCE
CEO Jeff Ciachurski's compensation is out of line, compared to the
Company's peers. Despite Western Wind's assertion that such
extraordinarily high compensation is okay when it is distributed via
stock instead of cash, compensation is compensation. Additionally, Jeff
Ciachurski is a member of Western Wind's Compensation Committee. Therefore,
he sets his own compensation! There is no question that this is
a dangerous violation of proper corporate governance standards. Such
exploitation is not surprising, though, considering that the Chairman of
Western Wind's Board of Directors, Michael Boyd, reports to the CEO in
his daily job as an executive vice president.
THE SAVITR NOMINEES WILL LEGITIMIZE THE SALE PROCESS
The only update shareholders have received in the supposed 60 days of
the company sale process was the engagement of financial advisors on
August 10th – several weeks into the process and after
“advanced discussions” had already begun. Let's be clear: the only
reason that Western Wind announced a rushed, cobbled together sale
process was in response to shareholder pressure. Once elected,
the Savitr Nominees will run a credible sale process to sell at an
optimal price that will maximize the return on investment of all Western
Wind shareholders.
THE CURRENT DIRECTORS LACK THE SKILLS NEEDED TO MAXIMIZE VALUE
The current Board consists of:
Western Wind Director
Western Wind's Spin
The Real Story
Jeffrey Ciachurski
Proud founder of Western Wind
Ciachurski has overseen the destruction of shareholder value at
Western Wind. Until the announcement of Savitr's proxy solicitation,
Western Wind's share price had fallen 41% in just under seven months.
Claus Andrup
Has experience working with public companies
Is a self-employed public relations consultant
Robert Bryce
Has experience working in public companies
Is severely over-boarded, sitting on a total of eight Boards
while also serving as president of Abitex Resources
Michael Boyd
Western Wind EVP of Business Development
Not independent and, as an employee, is beholden to Jeff
Ciachurski
John Wardlow
Leading member of the motion picture industry
Wardlow has been a stunt performer and stunt double in dozens of
movies
SAVITR IS 100% ALIGNED WITH ALL SHAREHOLDERS
As a shareholder just like you, Savitr benefits only from the best sale
price. Western Wind's current Board and management, on the other hand,
have conflicting incentives. The CEO's compensation is tied more closely
to the completion of projects than to stock price, and Directors and
management are considerably motivated to keep their jobs. Therefore, the
interests of Savitr are completely in line with those of all other
shareholders.
Savitr encourages shareholders to carefully review its proxy circular
and other materials and vote only their GREEN
proxy by no later than September 20, 2012 at 5:00 pm, (Vancouver Time),
in advance of the proxy voting deadline. If you have any questions
and/or need assistance in voting your shares, please call Kingsdale
Shareholder Services at 1-866-229-8166 or 1-416-867-2272 (collect calls
accepted).
The next failed promise or critical mistake from Western Wind's current
Board and management will be the most impactful. Don't
let their final decision at the helm of your company be the wrong one!The highly qualified, experienced and independent Savitr Nominees
are completely dedicated to running a credible sale process that will
benefit shareholders of Western Wind equally. The time to act is now. We
encourage you to vote for the Savitr Nominees and look forward to your
support.
/s/Andrew R. MidlerManaging MemberSavitr Capital, LLC
About Savitr Capital, LLC
Savitr Capital is an Investment Manager that focuses on investing in
renewable and clean energy companies. The firm has a socially
responsible approach to investments with a goal of delivering superior
risk adjusted return. These financial goals are coupled with a
commitment to sustainability and a responsible stewardship by investing
in companies poised for leadership in clean and renewable energy. Savitr
is a signatory to the United Nations Principles for Responsible
Investing (UNPRI) (www.unpri.org).
Sard Verbinnen & CoDan Gagnier, 212-687-8080
