Suzlon raises stake in REpower to 73.71%

Suzlon raises stake in REpower to 73.71%
PTI
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First Published: Tue, Dec 30 2008. 02 11 PM IST
Updated: Tue, Dec 30 2008. 02 11 PM IST
Mumbai: Wind turbine manufacturer Suzlon Energy on Tuesday said it has increased its stake in REpower to 73.71%, following its payment of first tranche of 65 million euro (about Rs444 crore) to Martifer.
In September, Suzlon had signed an agreement with Portugal-based Martifer for acquisition of the latter’s entire 22.48% stake in REpower Systems for €270 million. With the completion of the acquisition, Suzlon’s total holding in REpower would go up to 90%.
In a filing to the Bombay Stock Exchange, Suzlon said it has acquired the first tranche of Martifer Group’s stake in REpower Systems, Germany for a payment of about €65 million.
“Suzlon already holds 91% voting rights in REpower through an existing agreement with Martifer,” the company said.
Earlier this month, the company revised its payment schedule to acquire a 22.4% stake in REpower Systems, after its plans to raise Rs1,800 crore by way of a rights issue was suspended.
As per the reworked schedule, Suzlon would pay €270 million in three tranches as acquisition cost. With the first tranche being paid, the wind power major would pay €30 million in April 2009 and final tranche of €175 million in May 2009, which takes the total consideration to €270 million.
In June, Suzlon had acquired 30% stake of REpower from France-based Areva, taking its total holding to 66%. REpower is Germany’s biggest wind turbine maker.
Shares of Suzlon were trading at Rs61.30, up 1.49% in the afternoon trade on the BSE.
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First Published: Tue, Dec 30 2008. 02 11 PM IST