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Mumbai, Nov. 4 Suzlon Energy, the world’s fifth largest wind-turbine supplier, on Tuesday said it was in discussion with Portugal’s Martifer to work out a “mutually acceptable” payment schedule to enable it to buy out the latter’s 22.4 per cent stake in German wind turbine maker REpower Systems.

Suzlon had entered into an agreement in August to complete an early purchase of Martifer’s stake in REpower Systems in mid-December 2008, which was initially due in May 2009.

“The payment of the purchase price in May 2009 is secured by an international bank guarantee,” the company said in a statement.

After the purchase of Martifer stake, Suzlon will have nearly 90 per cent stake in REpower, which would improve its presence in Europe and possibly get access to its high-end technology at a latter date.

Last week, Suzlon had suspended its plans for a rights issue to raise Rs 1,800 crore due to market conditions. The funds were to be partly used to buy the Martifer stake in REpower.

In May 2007, Suzlon had acquired REpower for €1.35 billion (about Rs 7,314 crore). Martifer was a major shareholder in REpower and had partnered with Suzlon in the bid to acquire a stake in the company. At the time of the acquisition, Suzlon entered into a deal with Martifer and French nuclear energy company Areva to buy out their stake in REpower.

Suzlon’s shares were up 21 per cent on the NSE on Tuesday at Rs 55.40.

More Stories on : Mergers & Acquisitions | Overseas Investments | Non-conventional Energy

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