Mumbai: Indian wind-turbine maker, Suzlon Energy Ltd, will fund its $1.3 billion (Rs57,200 crore) bid to acquire Germany’s Repower with debt of nearly $900 million (Rs3,955 crore), and will issue fresh shares as and when required, chairman and managing director Tulsi Tanti said on Thursday.
A company source and a banker involved in the Repower deal had earlier told Reuters Suzlon may issue fresh shares for the transaction.
A company spokesman declined to comment.
“I am not saying that we will never dilute our equity,” Tanti told Reuters.
“It may happen in the future, based on any opportunities that come our way. Rightnow, we are comfortable with debt and ABN AMRO is le-ading the team for this deal,” he said.
Addressing market analysts’ concerns on Suzlon’s debt-equity ratio, Tanti said it was 1.1 for the full year to March 2007 and it would rise to 1.5 in 2007-08.
“The analysts’ assumptions are wrong because we do not give them forward-looking guidance,” Tanti said.
Analysts had estimated Suzlon’s present debt-equity ratio at 0.7 could rise to about 2.2 after any deal.
Suzlon and Portugal’s largest builder, Mota Engil, offered €126 (Rs7,300) per share for the German wind-power maker earlier this month, topping an offer of €105 a share from France’s Areva.