Wind turbine maker Suzlon Group said on Thursday that it has inked a binding agreement with US-based Centerbridge Partners, to sell 100 per cent stake in its wholly owned German subsidiary Senvion.

The deal is valued at euro 1 billion (about Rs 7,200 crore) equity value in an all cash transaction and future earn out of up to an additional Euro 50 million (about Rs 360 crore) .

The transaction is subject to regulatory and closing conditions and is expected to close before the end of the current financial year.

Tulsi Tanti, Chairman, Suzlon Group said, “This development is in line with our strategic initiative to strengthen our balance sheet. The proceeds would be used for debt repayment thereby reducing interest cost and augment business growth. We will focus on high growth markets like India, USA and other emerging economy markets.”

Suzlon has a debt of about Rs 16,000 crore. It is also implementing a corporate debt recast programme of Rs 9,500 crore.

Senvion will give Suzlon licence for off-shore technologies for the Indian market, while Suzlon will extend Senvion the S111-2.1 MW licence for the US market.

The sale of Senvion is in line with Suzlon‘s strategy to reduce the debt and focus on the home market and high growth market like USA and emerging markets such as China, Brazil, South Africa, Turkey and Mexico.

Stefan Kowski, Managing Director at Centerbridge, said, “Senvion is a company with impressive technology and leading market positions. The global market environment for renewable energies is promising for a wind turbine manufacturer, particularly for one of the most experienced players in the industry with onshore and offshore capability. We are confident that Senvion will continue its track record and, together with the company’s management, we look forward to supporting its continued development as a profitable and growing company.”

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