Top P E fiirms reported to be in Sulzon stake deal: report

Wind power equipment maker Suzlon Energy, after having negotiated a revised payment schedule with the Martifer Group of Portugal to acquire its 22.4-per cent stake in Germany's REpower Systems AG (See: Suzlon gets a new repayment schedule), is now trying to raise $500 million to fund this stake by selling a 10-15 per cent stake in itself, to potential suitors like the Carlyle Group and TPG Capital. 

According to media reports quoting bankers close to the deal, said that the Carlyle Group and TPG Capital may be interested in acquiring 10 to 15 per cent stake in Sulzon Energy for approx $300 million and the wind power equipment maker, would be raising an additional $200 million by way of debt offering or selling stakes from its other units.

In September this year, Sulzon agreed to acquire Portuguese conglomerate Martifer's 22.48-per cent stake in REpower Systems for €270 million ($396 million). (See: Suzlon buys out Martifer; raises REpower stake to 90 per cent)

The acquisition was to have been completed by 15 December and the company was in danger of breaching its debt pact with lenders if it went ahead with the acquisition of Martifer stake. Nor was it in a position to push it back as it could potentially result in legal action from its lenders.

Suzlon had provided Martifer with a bank guarantee valid until May, even as chairman Tulsi Tanti said the company planned to use its own cash for the purchase and may raise some debt to buy the stake.

In the beginning of November, Suzlon had been trying unsuccessfully to raise funds to acquire the rest of the stake and according to sources, Suzlon was exploring options to sell its stake to private equity firms to raise funds for the REpower acquisition. (See: Suzlon seeks new payment schedule for Martifer's REpower stake)