According to reports, Suzlon Energy Ltd, India’s largest wind turbine maker, has acquired Big Sky wind park from Edison Mission Energy in the US, Suzlon informed the exchanges on Wednesday, ending a dispute over receivables.
The acquisition was made through Suzlon’s US subsidiary Suzlon Wind Energy Corp. (SWECO), set up to cater to the growing needs of the wind power market in North America.
While the financial details of the transaction have not been disclosed, two people close to transaction said that the deal has been struck at $220 million.
Big Sky, a wind park in Illinois, has 114 S88 wind turbines. The acquisition makes Big Sky the biggest wind park owned by the Suzlon Group in the US.
Edison Mission Energy (EME) is engaged in the business of developing, acquiring, owning or leasing, operating and selling energy and capacity from independent power production facilities. It is a part of the Princeton-based NRG Energy Inc., a Fortune 500 company.
The move to acquire Big Sky comes after Suzlon decided to write-off the receivables from Big Sky in February 2014.
According to a Bloomberg report dated 17 February, Suzlon had been trying to recoup $208 million from Big Sky for machines sold in 2009 and written down the value by Rs.400 crore last year. The Indian firm had also lodged a court case against EME regarding non-payment.
Big Sky was formerly owned by Edison Mission Group, a unit of Edison International. NRG Energy agreed in October to buy most assets of bankrupt Edison Mission.
“Big Sky, however, is now completely debt-free and cash generating asset. All the proceeds from electricity production at Big Sky will now come to Sweco,” one of the people cited above said. Both chose to speak on condition of anonymity.
He also said that the firms have now amicably settled the issue out of court.
Commenting on the development, chief executive of Sweco, Duncan Koerbel said, “Our relationship with Edison Mission dates back to the earliest days of Suzlon doing business with the US and we are pleased to be their partner. We look forward to continuing the relationship with NRG Energy Inc.”