According to reports, Suzlon Energy, which holds majority stake in REpower Systems SE, on Thursday said shareholders of the German firm have approved the wind power major’s proposal to acquire remaining shares in the company.
REpower has approved Suzlon’s ‘squeeze-out’ proceedings to buyout minority shareholders, according to a regulatory filing.
The proposal was approved during REpower’s annual general meeting on September 21.
The cash compensation value for REpower’s minority shareholders was kept at “142.77 euros per no-par value share”.
Suzlon has over 95 per cent stake in REpower.
Under German laws, a shareholder with 95 per cent stake has the right to “initiate squeeze-out proceedings in respect of minority shareholders”.
On the approval, Suzlon Group Founder Chairman and Managing Director Tulsi R Tanti said it was an important milestone in the ‘squeeze-out’ proceedings.
“We welcome the passing of the resolution. However, due legal process continues and it will be inappropriate to comment further on this development. The proceedings will continue in full compliance with the German corporate law,” Tanti said.