Suzlon To Sell 25% Stake in REpower Sytems For $500 Mn
Suzlon is in separate talks with TPG Capital and a US- based energy fund to sell 25% stake in its subsidiary, REpower Systems AG, for $500 Mn.
The transaction will be done through a mix of fresh issue of shares by REpower and stake sale by Suzlon.
Suzlon will use the funds received from the sale to reduce its debt of around Rs 10,000 Cr.
Transaction Reference: ET
REpower Systems is Germany- based wind turbine manufacturer. The company has a market cap of $1.2 Bn on the Frankfurt stock exchange, which means that Suzlon is trying to sell its stake at a substantial premium.
REpower systems is facing trouble with the economic uncertainty in Europe and customers postponing projects.
For the quarter ended June 30, the company recorded revenues of e 213.1 Mn, down 29% over the year-ago period, with net profit of e 1.8 Mn.
Suzlon has reported losses in four of the past five quarters. For the three months ended June, its consolidated net loss doubled to Rs 912 Cr over the year ago period, due to lower volumes and forex loss of Rs 250 Cr.
Suzlon recently completed financial closure of refinancing and consolidation of debt worth Rs 10,690 Cr and also raised Rs 1,188 Cr through rights issue.
The company acquired Martifer Group's stake in REpower Systems after a bidding war with Areva in a deal that valued the German company at around $1.6 Bn. It holds 90% stake in REpower.
| Readers' Comments | Post a Comment >> |
KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 16/08/10 | REpower System - Suzlon (Stake Sale) | M&A | Texas Pacific Group Capital | 500.00 |
| 04/06/08 | REpower Systems - Suzlon Energy Ltd. | M&A | Suzlon Energy Limited | - |
| 08/02/07 | REpower Systems - Suzlon Energy Ltd. | M&A | Suzlon Energy Limited | 498.60 |
| 01/06/05 | REpower Systems - Suzlon Energy Ltd. | M&A | Suzlon Energy Limited | - |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 06/02/12 | M&A | Looking For | Wind Power Business | - | Planned |
| 01/02/12 | Private Equity | Looking For | Trishe Energy Private Limited | - | Planned |
| 31/01/12 | M&A | Gussing Renewable Energy GmbH | G P Green Energy Systems Private Limited | - | Completed |
| 27/01/12 | Private Equity | Zephyr Peacock India | Flareum Solar Technologies Private Limited (Formerly Gadhia Solar Energy Systems Private Limited) | 10.04 | Completed |
Fund |
||||
| Name | Corpus | Target Sector | Website | KeyContact |
|---|---|---|---|---|
| Texas Pacific Group Capital | 50000 | Consumer Goods Retail Telecom Media IT/ITES/Technology |
http://www.texaspacificgroup.com/ | David BondermanJames CoulterGunender Kapur |
Company |
||||
| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| Suzlon Energy Limited | Tulsi R Tanti & Family | Suzlon 5,Shrimali Society , Near Shri Krishna Complex Navrangpura , Ahmedabad - 380009 Gujarat. | BGR Energy Systems Limited | www.suzlon.com |
| Dealforwards |  |
| Feb 1, 2012... | Trishe Energy To Raise PE Funding For Wind Power Projects |
|
| Feb 6, 2012... | Unitus Seed Fund Invests In Bodhicrew Services, Hippocampus Learning, Milaap Social |
|
| Feb 1, 2012... | Beta Wind Farm Raises $249Mn Loan For Power Projects |
|
| Feb 1, 2012... | Ujjivan Financial Services Raises $25.5Mn PE Funding |
|
| Feb 6, 2012... | Kotak Realty Fund Invests R80Cr In Orris Infrastructure |
|
Editorial
India A Bright Spot For Otherwise Insolvent CalPERS
I heard that Calfornia Pension is going to default and I started wondering what could be India's contribution to that.
