Pune: Loss-making Wind turbine maker Suzlon Energy is considering a stake sale in its wholly-owned subsidiary REpower Systems SE, reports say. Repower is based in Hamburg, Germany, and manufactures onshore and offshore wind turbines with installation of around 3,600 wind turbines around the world.
Suzlon had acquired Repower at a high price after a bidding war with French energy company Areva in 2007. The firm was then valued at Euros 1.2 billion. The company got full control over the Germany subsidiary only late last year after buying out minority shareholders.
Bloomberg Businessweek had reported last week that Suzlon was studying option for its German REpower Systems SE subsidiary, including a sale or listing. The report said it was looking at raising Euro 1.5 billion from the sale. The options being considered was listing of REpower’s international operations or REpower itself. The Wall Street Journal too had reported that Suzlon was in talks with potential buyers such as Alstom and General Electric.
Suzlon has neither confirmed nor denied these reports. A company spokesperson said, “We don’t comment on market rumour or speculation.”
The company is under pressure as the debt repayment schedule approaches. The company has to raise R1,500 crore by June 2012.
Suzlon has already started selling non-core assets to raise funds and a small beginning was made last week when it announced sale of windfarm assets in India.
Suzlon Group, on Wednesday announced the sale of a block of wind assets for about R200 crore to repay its debt. These windfarms are located across India, with a majority of them located in Tamil Nadu.
Suzlon’s foreign currency convertible bonds comes up for redemption in June 2012 and October 2012 and this aggregates R3,021 crore. Suzlon has been maintaining that they would be able to take care of these obligations through recoveries from customers, sale of non-core assets and from selling their stake in Hansen Transmission.
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