NEW YORK, September 8, 2012 /PRNewswire-FirstCall/ -- The Board of Directors of China Hydroelectric Corporation (NYSE: CHC, CHCWS) ("China Hydroelectric" or the "Company"), an owner, developer and operator of small hydroelectric power projects in the People's Republic of China (the "PRC"), today issued the following letter to its shareholders in response to recent actions taken by a minority shareholder group:
Dear Shareholder of China Hydroelectric Corporation:
As you may be aware, a group of minority shareholders (the "Insurgents") of China Hydroelectric Corporation (the "Company") has sought to unilaterally call an extraordinary general meeting of shareholders in an attempt to acquire control of your Company by seeking to replace the Company's Board of Directors (the "Board") with their own nominees. The Insurgents are trying to take advantage of the Company's currently low stock price in order to seize control of the Company without paying a control premium or even putting forward an alternative plan for the operation of the Company moving forward. The Board believes that these efforts being pressed by the Insurgents, led by NewQuest Capital Partners, to obscure their own internal agenda, are not in the best interests of a majority of shareholders, will lead to meaningful value destruction and represents a significant risk to the interest of all shareholders.
To advance their efforts, the Insurgents have purported to call their own unauthorized extraordinary general meeting on September 28, 2012. The Board requests that shareholders ignore and discard any proxies or solicitation materials they may receive from the Insurgents for a September 28th meeting.
The Insurgents have made certain criticisms of the Board and management, all of which the Board and management believe are unfounded, inaccurate and irresponsible. In that regard, you should be aware of the following:
Your Board and Management believe the Insurgents are self-serving and not acting in the best interests of ALL shareholders. Further, the Insurgents lack of relevant experience makes them wholly unqualified to operate your Company should they succeed in seizing control. Shareholders should ask themselves:
The Company will provide you with a proxy card and solicitation materials in the near future. Please do not confuse our materials with those provided by the Insurgents. We ask you to discard any proxy materials with a White proxy care provided by the Insurgents.
Your Board and management continue to be committed to increasing and preserving value for ALL SHAREHOLDERS and would be please to discuss any questions you may have with you and provide any further explanation or detail you request. We recommend that you reject all efforts by the Insurgents to wrest control of your Company away from the rest of the shareholders without offering any value or plans for increasing value to all shareholders. To that end, we ask for your continued support. If you have any questions, please do not hesitate to contact John Kuhns or Mary Fellows at either 646-467-9810 or 860-435-7000.
Thank you.
Best regards.
John D. Kuhns, Chairman
If you voted a proxy card sent to you from the Insurgents for their purported September 28th, meeting, you are urged to revoke that vote by calling the firm assisting us:
Morrow & Co., LLC at 203-658-9400
About China Hydroelectric Corporation
China Hydroelectric Corporation (NYSE: CHC, CHCWS) ("China Hydroelectric" or "the Company") is an owner and operator of small hydroelectric power projects in China. Through its geographically diverse portfolio of operating assets, the Company generates and sells electric power to local power grids. Led by an international management team, the Company's primary business is to identify, evaluate, acquire, develop, construct and finance hydroelectric power projects. The Company currently owns 26 operating hydropower stations in China with total installed capacity of 548 MW, of which it acquired 22 operating stations and constructed four. These hydroelectric power projects are located in four provinces: Zhejiang, Fujian, Yunnan and Sichuan. Hydropower is an important factor in meeting China's electric power needs, accounting for approximately 22% of total nation-wide capacity.
For further information about China Hydroelectric Corporation, please visit the Company's website at http://www.chinahydroelectric.com .
Cautionary Note Regarding Forward-looking Statements and Weather Data
Statements contained herein that address operating results, performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. The forward-looking statements include, among other things, statements relating to the Company's business strategies and plan of operations, the Company's ability to acquire hydroelectric assets, the Company's capital expenditure and funding plans, the Company's operations and business prospects, projects under development, construction or planning and the regulatory environment. The forward-looking statements are based on the Company's current expectations and involve a number of risks, uncertainties and contingencies, many of which are beyond the Company's control, which may cause actual results, performance or achievements to differ materially from those anticipated. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Among the factors that could cause actual results to materially differ include: supply and demand changes in the electric markets, changes in electricity tariffs, hydrological conditions, the Company's relationship with and other conditions affecting the power grids we service, the Company's production and transmission capabilities, availability of sufficient and reliable transmission resources, our plans and objectives for future operations and expansion or consolidation, interest rate and exchange rate changes, the effectiveness of the Company's cost-control measures, the Company's liquidity and financial condition, environmental laws and changes in political, economic, legal and social conditions in China , and other factors affecting the Company's operations that are set forth in the Company's Annual Report on Form 20-F for the year ended December 31, 2011 filed with the Securities and Exchange Commission (the "SEC") on April 27, 2012 and in the Company's future filings with the SEC. Unless required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact: | |
Company: | Investor Relations firm: |
John E. Donahue, VP of Investor Relations | Scott Powell, Senior Vice President |
China Hydroelectric Corporation | MZ Group |
Phone: +1-646-467-9810 | Phone: +1-212-301-7130 |
Email: scott.powell@mzgroup.us |