Suzlon buys out Martifer stake to up REpower holding to 90.72 per cent
06 June 2009
Wind turbine maker Suzlon Energy has completed acquisition of Martifer Group's 14.4 per cent stake in REpower Systems AG, with a final payment of Euro 87.6 million. Suzlon's stake in Germany-based REpower has increased to 90.72 per cent, the company said ina filing with the Bombay Stock exchange (BSE).
The purchase of Martifer's stake in REpower by Suzlon was agreed in February 2007 at the time of the joint bid by Suzlon and Martifer. With the conclusion of this transaction, the final tranche of shares in REpower held by Martifer accounting for approximately 14.4 per cent, which had been acquired in a two part payment plan, has been transferred to Suzlon, who now holds approximately 90.72 per cent of shares and voting rights in REpower, according to the filing.
Pune-based Suzlon had paid Euro 65 million as the first tranche ti Martifer in December last year, hiking its stake in REpower to 73.1 per cent.
This is final tranche of the Euro 270 million that Suzlon had agreed to pay to buy Martifer's 22.4 per cent stake in REpower Systems.
A higher stake in REpower will enable Suzlon to transfer its superior wind energy technology to other emerging markets such as India and China. Suzlon also needs better technology in the face of the recent recession to push sales of its wind turbines.
Suzlon's promoters have raised a total of Rs750 crore by selling their 6 per cent stake in two tranches for the REpower acquisition.
The Suzlon stock has gained 40 per cent in the past one week and 99 per cent over the last one month.