Business Daily from THE HINDU group of publications
Sunday, Apr 05, 2009
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Business Daily from THE HINDU group of publications Sunday, Apr 05, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Corporate
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Mergers & Acquisitions
Rahul Wadke Mumbai, April 4 Suzlon Energy Ltd could seek extension of the May deadline for paying Rs 1,300 crore (€205 million) to the Portuguese company Martifer for acquiring the remaining stake in the German wind power company REpower. Mr Sumant Sinha, Chief Operating Officer, Suzlon, told Business Line, “We are working out various options with Martifer, who is also our customer and we are also supplying equipment to the company. We are confident of working out a right solution with Martifer.” In May 2007, when Suzlon had acquired REpower of Germany for €1.35-billion (about Rs 7,314 crore), Martifer was a major shareholder in REpower. It had partnered with Suzlon in the bid to acquire a controlling stake in the company. Suzlon is supposed to buyout Martifer’s stake by May. Martifer has about 22 per cent stake in REpower. When Suzlon acquires Martifer’s stake in REpower, the Indian company’s stake will increase to 90 per cent and then it would be in a position to have a ‘domination agreement’ required under the German law for completely controlling REpower. Mr Sinha said the company may go in for a loan to pay Martifer. It will also examine the scope for dilution of equity to raise part of the fund. “Our current working capital requirements are about Rs 5,000 crore and we are working for the last several months to reduce it. We could reduce it by Rs 500 crore to Rs 1,000 crore. Typically, our working capital in the first half year is not very high,” Mr Sinha said.
Suzlon acquires Martifer's tranche Suzlon to buy out Martifer stake in REpower German body okays Suzlon's offer to buy REpower More Stories on : Mergers & Acquisitions | Non-conventional Energy | Suzlon Energy Ltd
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