Suzlon raises REpower stake to 73.71 per cent
30 December 2008
Suzlon Energy Ltd, the world's fifth largest wind turbine maker, has increased its stake in Germany's REpower to 73.71 per cent by completing payment of the first tranche of 65 million euro ($91.98 million) to Martifer.
Early this month, Suzlon Energy and the Martifer Group of Portugal had agreed on a revised payment schedule for Martifer's 22.4-per cent stake in REpower (See: Suzlon gets a new repayment schedule).
As per the new terms, Suzlon will pay Martifer approximately euro 65 million in December 2008, euro 30 million in April 2009 and the final tranche of euro 175 million in May 2009.
Upon completion of this transaction, Suzlon will own about 91 per cent in REpower. Suzlon already holds 91 per cent voting rights in REpower through an existing agreement with Martifer.
"We have achieved a mutually satisfactory arrangement with our long standing partners. We have built a strong relationship with the Martifer Group and expect to strengthen our business relationship further in the years to come," Tulsi Tanti, chairman and managing director of Suzlon Energy Limited, stated after signing the agreement. "Our commitment to facilitate further growth in REpower and to safeguard the interests of all stakeholders in the company remains strong as ever," he had stated then.
The Martifer Group is the holding company of a portfolio of approximately 120 companies that are divided into four core business units: metallic construction, energy equipment, advanced fuels and electricity generation. Martifer is one of the fastest growing companies in Europe and the group's assets already exceed €300 million in value.
Suzlon is ranked as the world's fifth leading wind turbine manufacturer with over 10.5 per cent of global market share in 2007. The leading manufacturer in the Indian market for nine consecutive years, maintaining over 50 per cent market share, Suzlon has its corporate offices in Pune, India and company's global spread reflects in its projects and markets portfolio - extending across Asia, Australia, Europe and North and South America. Suzlon is a well integrated turbine manufacturer with manufacturing capability for the full value chain – from components to complete wind turbine systems.