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REpower stake: Suzlon for revised payment schedule

REpower stake: Suzlon for revised payment schedule
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First Published: Wed, Nov 05 2008. 12 52 AM IST

Ongoing talks: Suzlon Energy’s chairman and MD Tulsi Tanti. Ashesh Shah / Mint
Ongoing talks: Suzlon Energy’s chairman and MD Tulsi Tanti. Ashesh Shah / Mint
Updated: Wed, Nov 05 2008. 12 52 AM IST
Mumbai: The country’s biggest maker of wind-turbine generators, Suzlon Energy Ltd, said it’s in talks with Martifer SGPS SA to set a new payment schedule for buying its 22.4% stake in REpower Systems AG.
“Suzlon and Martifer are currently in discussions to arrive at a mutually acceptable payment schedule,” Ahmedabad-based Suzlon said in an emailed statement on Tuesday.
Ongoing talks: Suzlon Energy’s chairman and MD Tulsi Tanti. Ashesh Shah / Mint
The company had agreed to complete the purchase of Martifer’s stake in REpower for €270 million (Rs1,655 crore) by 15 December, Oliveira de Frades, northern Portugal-based Martifer, said in a regulatory filing on 1 September. Suzlon acquired REpower for better access to the European markets.
Suzlon has provided Martifer with a bank guarantee valid until May. The company plans to use its own cash for the purchase and may raise some debt to buy the stake, chairman Tulsi Tanti said last week.
Suzlon last month suspended a rights offer to raise Rs1,800 crore to buy the additional stake in REpower .
The company owns 66% of REpower and 89% of the voting rights in the German company, including those of Martifer.
Suzlon reported on 31 October a group loss in the second quarter after currency fluctuations and expenses on blade failures in the US. The loss in the three months ended 30 September, including that of subsidiaries, was Rs130 crore, compared with a profit of Rs374 crore a year earlier, the company said. Suzlon, which dropped 86% this year, rose 20.6% to Rs55.40 on the Bombay Stock Exchange.
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First Published: Wed, Nov 05 2008. 12 52 AM IST