Suzlon buys out Martifer; raises REpower stake to 90 per cent

01 September 2008

Mumbai: The world's fourth-largest wind turbine maker, Suzlon Energy Ltd has agreed to acquire Portuguese conglomerate Martifer's 22.48-per cent stake in REpower Systems for €270 million ($396 million).

The acquisition, to be completed by 15 December, would take Suzlon's holding in REpower to around 90 per cent, the company said in a statement.

''The completion of the agreement will take Suzlon's stake in REpower to nearly 90 per cent and put both companies in a stronger position to derive synergy benefits from the collaboration,'' Suzlon chairman Tulsi Tanti said in the statement.

The company was reported to be considering offloading a part of its 33.85-per cent stake in the German firm, whose shares had gained 90 per cent  since its acquisition by Suzlon in May 2007 (See: Suzlon acquires wind turbine major Repower as Areva quits bidding)

However as it had been hard put to gain technology from REpower company as German law forbids any shareholder from having any special rights over information or technology.

It then opted to raise its stake to about 66 per cent by buying out French state-run Areva's 30-per cent holding in June.