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Suzlon chairman says ‘no question’ of family exiting

Suzlon chairman says ‘no question’ of family exiting
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First Published: Wed, Jan 05 2011. 11 34 AM IST
Updated: Wed, Jan 05 2011. 11 34 AM IST
Mumbai: The controlling shareholder of Indian wind turbine maker Suzlon Energy said there was “no question” of exiting the company, after media reports on Tuesday said a rival was looking to buy a controlling stake.
“There is no question of the Tanti family walking away from our great company,” Suzlon chairman Tulsi Tanti wrote in an internal memo to senior staff late on Tuesday that was obtained by Reuters.
Tanti’s family owns roughly 58% of Suzlon, the No. 3 global player, which has been the subject of occasional reports of a possible sale.
“I want to assure you of my fullest commitment to this organization and business that we have worked so hard to build,” Tanti wrote.
On Tuesday, shares in the company rose as much as 5.6% after TV reports of a possible sale to Spain’s Gamesa. Suzlon said on Tuesday the reports were “speculative in nature and inaccurate”.
Shares in Suzlon, which has a market value of about $2.2 billion, were down about 0.8% on Wednesday.
The wind energy equipment market has been dogged since late 2008 by weak demand in the United States and Europe in the wake of the financial crisis, prompting consolidation talk.
Shares in Suzlon and larger rivals Vestas of Denmark and Gamesa all trade far below peaks reached in 2007 and 2008.
In September, Suzlon told Reuters that it was in talks to buy the remaining 9% stake in Germany’s REpower Systems AG that it doesn’t already own.
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First Published: Wed, Jan 05 2011. 11 34 AM IST