Suzlon to up its stake in German wind power firmDecember 16th, 2008 - 3:08 pm ICT by IANS
New Delhi, Dec 16 (IANS) Suzlon Energy, the world’s fifth leading and India’s largest wind turbine manufacturer, Tuesday announced that it will invest about 270 million euros (about $369 million or Rs.17.56 billion) to hike its stake in German wind power company REpower Systems AG.Suzlon will pick up a 22.4 percent stake that Martifer Group of Portugal holds in REpower, which will up its holding in the German firm to about 91 percent.
As per the new terms, Suzlon will pay Martifer in three tranches with the first instalment of euro 65 million ($89 million or Rs.4.23 billion) being paid this month.
The next instalment, of euro 30 million ($41 million or Rs.1.95 billion), will be made in April 2009 and the final one of euro 175 million ($239 million or Rs.11.38 billion)the following month.
Suzlon’s acquisition of Repower Systems is aimed at tapping the European and North American wind energy markets. Said a Suzlon spokesperson: “REpower complements us in both extending our geographical presence and widening our product portfolio. Suzlon is strong in the South European market with medium capacity onshore wind power plants, and REpower has strong offshore capabilities in Northern Europe.”
While Suzlon’s largest on-shore wind turbine is of 2.1 MW capacity, REpower’s wind turbines are in the range 2.2 MW to 5 MW.
“REpower will also benefit from the deal as it can capitalise on Suzlon’s integrated supply chain and manufacture or source wind turbines faster and at cheaper rates,” the spokesperson added.
Suzlon’s script was trading up by 7.17 percent following the announcement.