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Mr Tulsi Tanti

Our Bureau

Mumbai, June 6 Global wind power giant Suzlon Energy Ltd on Saturday said it has completed buying Portuguese company Martifier’s stake in Germany’s REpower Systems.

In a BSE notification, the company said that after the completion of the final €87.6 million payment, it now holds 90.72 per cent of shares and voting rights in REpower Systems.

In May 2007 after months of intense bidding war, Suzlon Energy Ltd won the €1.35-billion bid and had acquired REpower.

It had achieved the task, while its cash flow was only €250 million.

Mr Tulsi Tanti, Chairman and Managing Director, Suzlon, said, “The completion of the purchase of Martifer’s stake in REpower is a major milestone for Suzlon. With the transaction behind us, we will focus our efforts on building a mutually beneficial business relationship with Martifer by harnessing the complimentary strengths and business models.”

The final tranche of shares, which was approximately 14.4 per cent stake in REpower, was acquired in a two-part payment schedule with a payment of €87.6 million on May 29 and an equivalent amount on June 5.

A spokesperson for Suzlon told Business Line that, going forward the strategy would be to maintain Suzlon and REpower as two companies and brands.

However, the companies will collaborate for supply chain management, “As Suzlon does not have a Domination Agreement under German law for REpower, it does not receive dividends from REpower nor the profit is shared by the two companies,” the spokesperson said.

REpower has a significant footprint in European offshore wind energy market. As the European onshore wind energy market gets saturated over time, it will provide opportunity for REpower to further expand its reach in the offshore wind market, the spokesperson added.

On Friday at the closing of market hours on BSE, the stock was traded at Rs 130.90 a decline of 4.31 per cent over the previous closing price of Rs 136.80.

More Stories on : Non-conventional Energy | Mergers & Acquisitions | Suzlon Energy Ltd

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