Suzlon buys 30 percent REpower stake

Mumbai: Suzlon Energy on Friday said that it has acquired 30 per cent stake in REpower Systems from French nuclear major Areva, taking its stake to about 66 per cent in the German wind turbine firm.

The company however did not disclose the amount spent for the acquisition of shares. According to a press release posted on the Areva’s website, sale of the stake has generated a capital gain of more than 350 million euros ($ 540 million) for the French company.

In May 2007, after five months of high-profile bidding, Suzlon had won the euro 1.35-billion (about Rs 7,314 crore) bid to acquire REpower, with a cash outflow of euro 250 million.

It had entered into an agreement with Areva by which the French company had the option of selling its holdings in REpower to Suzlon at its discretion at the prevailing market price. In a BSE filing, Suzlon said that with the current acquisition and through voting pooling agreement with Martifer of Portugal, another major shareholder of REpower, the company has voting rights of approximately 89 per cent in REpower.

A company spokesperson said that Suzlon has not taken a decision regarding buying out the stake of Martifer; it has another year to decide.

Regarding the possibility of selling REpower shares on the German stock market, which was mentioned to the media by the Chairman, Mr Tusli Tanti, during fourth quarter results last month,the spokesperson said “the company had considered the idea given the euro 240 share price at that time. But today the price has come down to a certain extent.” Repower’s shares were down today nearly 6 per cent in the German stock exchanges and traded around Euro 208 a share.