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Suzlon Energy acquires Areva’s share in REpower

Suzlon Energy acquires Areva’s share in REpower
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First Published: Fri, Jun 06 2008. 03 14 PM IST
Updated: Fri, Jun 06 2008. 03 14 PM IST
PTI
Mumbai: Wind energy major Suzlon said it has acquired an additional 30% stake in REpower Systems from its French rival Areva, consolidating its holding to 66% in the German wind turbine firm.
The announcement spurred the shares of Suzlon, which touched an intra-day high of Rs 282.50 by surging 6.08% from its previous day’s close of Rs268.60. The scrip was trading at Rs 283.05, up 5.38% on the BSE in the afternoon trade.
“The company has signed a share purchase agreement with Areva for acquisition for its total stake of about 30% in REpower Systems AG,” Suzlon said in a filing to the Bombay Stock Exchange.
A separate statement issued by Areva said it has sold its minority stake in REpower gaining more than 350 million Euro.
“Areva announces the sale of its 30% stake in wind turbine manufacturer REpower to Suzlon, generating a capital gain of more than 350 million Euros,” Areva said in a release on its website.
With this acquisition and through voting pooling agreement with Martifer, who owns about 31% in REpower, the domestic company enjoys voting rights of approximately 89% in the German firm, the filing added.
In May 2007, Suzlon Energy had entered into an agreement with Areva according to which the French firm had the option of selling its holdings in REpower to the Indian entity at its discretion at a guaranteed price.
The agreement followed the acquisition by the Indian firm as last year Suzlon had outbid Areva in the race for acquiring the REpower with a bid of Euro 150 per share.
Besides, shares of REpower were trading down 3.78% at 205.97 Euro on the Deutsche Bourse.
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First Published: Fri, Jun 06 2008. 03 14 PM IST
More Topics: Suzlon | RE Power | Areva | Equity | Wind Power |