The Hindu Business Line : Tanti group venture buys Chinese wind energy firm

Mumbai, July 7 Tanti group of companies, the promoters of Suzlon Energy Ltd, jointly with Bahrain-based Arcapita Bank, has acquired Honiton Energy Holdings, a Chinese wind energy firm.

The company has not disclosed the value of the deal.

The joint venture partners will invest $2 billion by 2012 to develop a 1,650-MW portfolio of wind farms in the Inner Mongolia region of China.

The acquisition is being channelled through Colossus Holdings, a Singapore-based holding company of the Tanti group. The group directly and indirectly owns 66 per cent of Suzlon Energy, the world’s fifth leading supplier of wind turbines with a 10.5 per cent global market share.

The joint venture partners have signed a definitive purchase agreement to acquire Honiton.

Suzlon Energy Ltd has a significant presence in China through Suzlon Energy (Tianjin) Ltd, a wholly owned subsidiary of the company. In 2005-06, Suzlon had set up an integrated manufacturing facility in the eastern Chinese port city of Tianjin with an investment of $60 million.

Mr Tulsi R. Tanti, Chairman and Managing Director of Suzlon, who is also a Director of Colossus Holdings, in a media statement said, “this investment reinforces our commitment towards the renewable energy sector and belief in the exponential growth potential of wind energy in developing markets like China and India. Honiton, having developed an excellent pipeline of projects and backed by a strong management team, provides us with a good opportunity to further our interests in the wind energy sector along with Arcapita,” Mr Tanti said.

Capacity works

Honiton was established in 2005 to develop and operate wind power generation facilities within China, and has 50 MW of installed capacity, and another 100 MW under development. In addition, the company has worked closely with the regional and state authorities in China, and has secured agreements to develop wind farms on five separate areas in China, representing a total of 2,244 sq km , on which it plans to develop its total capacity to reach 1,650 MW by 2012. Total installed wind energy capacity in China at the end of 2007 was 6,000 MW.

Suzlon has earlier worked with Honiton when it supplied the turbines for the first phase of Honiton’s 50-MW Bailingmiao project in Inner Mongolia. Also, REpower, the German turbine manufacturer in which Suzlon recently increased its stake to 66 per cent, has a joint venture — REpower North (China) Ltd — with Honiton to produce wind turbines of 2 MW capacity.

YES Bank Ltd was the sole advisor to Colossus Holdings on the transaction.