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Suzlon to buy remaining of REpower for €63mn

A few months, Suzlon Energy announced plans to shortly start making REpower wind turbines at its plant near Mangalore. Further, the offshore wind business is set to take off in India and Suzlon will expect that REpower will dominate that market in India with Suzlon’s market and sales expertise.

In April this year, Suzlon Energy Ltd said it has taken the necessary steps to push for a 100% stake in its German unit, REpower Systems AG, after raising its stake to 95.16%.

Indian wind turbine maker Suzlon Energy previously had a 90.5% stake in REpower.

Suzlon said under Germany’s regulatory rules a shareholding of 95% in a listed company allows the majority shareholder to “initiate squeeze-out proceedings” on minority shareholders.

Suzlon, through its unit AE-Rotor Holding B.V., has asked the board of REpower to begin the buy out of the minority shareholders, the company said.

According to reports, Suzlon Energy Ltd. said that it has set the cash compensation for the transfer of shares in REpower Systems SE from minority shareholders at €142.77 per share. The total cash compensation payable by AE-Rotor Holding BV, a stepdown wholly-owned subsidiary of Suzlon, is expected to be around €63mn. A resolution on the squeeze-out is proposed to be passed at the annual general meeting (AGM) of REpower. The AGM is scheduled to be held on September 21. A successful completion of these proceedings will result in REpower becoming a step-down wholly-owned subsidiary of Suzlon.

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