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Suzlon initiates steps to buyout remaining stake in REpower

Suzlon initiates steps to buyout remaining stake in REpower
PTI
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First Published: Mon, Apr 04 2011. 07 00 PM IST
Updated: Mon, Apr 04 2011. 07 00 PM IST
New Delhi: Wind power major Suzlon Energy, which has little over 95% shareholding in REpower Systems AG, on Monday said it has initiated steps to acquire the remaining stake in the German entity.
Currently, Suzlon through its subsidiary AE-Rotor Holding BV (AERH) directly and indirectly has 95.16% stake in REpower.
In a regulatory filing, Suzlon said it has started the process to acquire the remaining stake in REpower.
Under German laws, a shareholder with 95% stake has the right to “initiate squeeze-out proceedings in respect of minority shareholders”.
“The company, through AERH, provided a notice today to the management board of REpower requesting the conduct of a squeeze-out procedure,” it said.
According to the filing, the management board of REpower must now take certain necessary steps in relation to the squeeze-out procedure.
“This will result in REpower being a wholly-owned subsidiary of the company. The squeeze-out will be subject to additional expenditure, completion of procedural steps and timing requirements as may be required by German laws and regulations,” the filing noted.
Shares of the company rose over 2% to close at Rs49.65 on the Bombay Stock Exchange.
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First Published: Mon, Apr 04 2011. 07 00 PM IST