- Wind energy developer, Windlab (WND) has advised its shareholders to vote in favour of a proposed acquisition
- An entity owned indirectly by Federation AssetManagement and Squadron Energy has offered to buy all Windlad shares for $1 each
- This represents a 30 per cent premium on the six-month volume-weighted average price (VWAP) and a 40.1 per cent premium on the 30-day VWAP
- Windlab directors have unanimously recommended that shareholders vote in favour of the scheme at the virtual meeting on June 5, 2020
- Company shares closed 1.05 per cent lower at 94 cents each
Wind energy developer, Windlab (WND) has advised its shareholders to vote in favour of the proposed acquisition of the company.
The offer was made by Wind Acquisition 2, an investment vehicle indirectly owned by Squadron Energy and funds managed by Federation Asset Management.
Wind Acquisition 2 is seeking to purchase all Windlab shares for a consideration of $1 per share, implying a fully diluted market capitalisation of approximately $69.6 million.
This consideration represents a 30 per cent premium on the six-month volume-weighted average price (VWAP) from January 17, 2020, when the proposed acquisition was announced.
Further, it represents a 33.2 per cent premium to the three-month VWAP and a 40.1 per cent premium on the 30-day VWAP.
Windlab directors have unanimously recommended that in the absence of a superior offer, shareholders should vote in favour of the scheme at the scheme meeting on June 5, 2020. This will be held virtually rather than physically due to the COVID-19 pandemic.
This recommendation is reinforced by the analysis of KPMG Corporate Finance, appointed by Windlab to prepare an Independent Expert Report.
In this, KPMG Corporate Finance reported that the consideration offered is at the upper end of its valuation range of 68 cents to $1 per WND share and as such concluded that the scheme is fair and reasonable to shareholders.
Windlab shares closed 1.05 per cent lower today at 94 cents each.