| WINDS of change
Mumbai, June 2: Wind turbine maker Suzlon Energy has concluded its acquisition of Hamburg-based REpower.
Suzlon now controls 87.1 per cent, or more than three-quarter, of voting rights in the company along with France’s Areva and Portugal’s Martifer.
Suzlon said it held 33.85 per cent in REpower after acquiring 25.46 per cent more during an extended offer period for REpower’s shares that ended on May 25.
The company said it’s 87.1 per cent voting rights combined voting pool agreements with Martifer and Areva and the 25.46 per cent capital it received.
Suzlon had offered 150 euros per REpower share, valuing the German firm at around 1.2 billion euros ($1.6 billion), while Areva, the world’s biggest maker of nuclear power plants, did not raise its offer price from 140 euros per share.
Last week Suzlon and Areva decided to jointly run the German firm after both separately failed to get a majority stake in it.
Areva entered into a pact with Suzlon, under which it was agreed that the former would keep its 30.16 per cent stake in REpower. Areva can sell its stake to Suzlon after one year. Martifer can also sell its 23 per cent holding in two years.
On May 25, Suzlon had said it hoped to control 75 per cent of REpower and become the world’s fourth largest wind-turbine maker
Considering REpower’s enterprise value of 1.34 billion euros, Suzlon’s acquisition is said to be the third largest overseas takeover bid by an Indian company in recent times.
After the acquisition, Suzlon is expected to be in a position to accelerate its expansion into the European market, which constitutes about half of the global wind energy market.