Suzlon may sell stake to IDFC PE in swap deal
11 October 2010
Suzlon Energy Ltd, India's largest wind-turbine maker, said today it will consider a proposal to sell 31.99 million shares to IDFC Private Equity Fund in a no-cash transaction.
IDFC PE, which invests in Indian infrastructure companies and has $1.3 billion under management, will get preference shares in Suzlon in return for stock it holds in Suzlon unit SE Forge Ltd, it said in a statement to the Bombay Stock Exchange.
''This is a transfer of IDFC's stake to the parent company and no money is involved,'' Anoop Kharayat, Suzlon's spokesman, said. Pune-based SE Forge will become a wholly owned unit of Suzlon after the transaction, he said.
Suzlon, which reported a loss of Rs911 crore ($205 million) for the three months ended June, is seeking funds to expand its presence in the US and Europe. Suzlon in May agreed to Rs10,600 crore of loans from lenders led by IDBI Bank Ltd and State Bank of India to refinance existing debt, according to data compiled by Bloomberg.
IDFC PE earlier swapped shares in unlisted Delhi International Airport for a stake in listed parent GMR Infra.
Suzlon informed the bourses that IDFC PE Fund III will be issued 31,992,528 shares of Rs2 each by way of preferential allotment. These shares are worth Rs183.5 crore as per Friday's closing price of Rs 5.35.