Finavera Wind Energy Receives Initial Offers; Shares Fell 16% Thursday
Finavera Wind Energy Inc. (FVR.V), which fell 16% Thursday, provided an update on an intended corporate transaction which is currently the subject of advanced negotiations with four prospective companies. Finavera anticipates the selection of a lead offer and the subsequent announcement of a binding deal in short order.
It said: "Finavera Wind Energy has received initial offers from four companies in relation to a corporate transaction ranging from a complete offer for the outstanding share capital of the company to a corporate partnership that allows the company to advance its projects to construction and operation. The offers are the subject of ongoing negotiations.
"The four companies that have submitted offers to Finavera have completed significant due diligence including thorough reviews of the company's documentation, site visits to a number of project locations, confirmation of turbine supply pricing and construction costs, risk assessments and the financial modeling of the returns from the projects.
"There are a further twelve groups that have signed Non-Disclosure Agreements and are currently reviewing data in the company's data room and conducting initial due diligence with the company. It is anticipated that additional offers will be forthcoming from some of these groups.
"Before a decision relating to a particular transaction is made by Finavera's Board, the different offers will be reviewed by Capital West Partners, an experienced merger and acquisitions advisor appointed by Finavera's Special Committee of the Board. The Special Committee is comprised of three independent directors and is charged with ensuring that the ultimate decision reflects the best interests of all shareholders and is not subject to any conflict of interest."
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