Suzlon dismisses report of stake sale to Spain's Gamesa
05 January 2011
Suzlon Energy on Tuesday denied reports that it was in talks with a Spanish company, Gamesa Corporacion Tecnologica, for a majority stake sale.
In a statement to the Bombay Stock Exchange, Suzlon said that the news relating to the Spanish wind turbine manufacturer picking up a stake in the company was ''speculative and inaccurate''.
''Gamesa on its part," said the company ''does not comment on rumours''.
Earlier it was reported, particularly by the Business Standard, that India's largest wind-turbine maker is in talks with Gamesa for a strategic alliance. The discussions may result in Suzlon's promoters, led by Tulsi Tanti, selling a majority stake in the company, the report said, quoting unidentified people familiar with the developments.
The Tulsi Tanti and family holds a 58.14 per cent stake in the company.
Merrill Lynch was reported to be one of the advisors to the transaction. However, the report said even though talks between the two have been going on for a while, closure may still take some time as definitive term sheets are yet to be signed, and contours of the deal are still being worked out.