Suzlon may sell 25% stake in REpower to PE players
Top Indian wind-power firm Suzlon Energy is reportedly in talks with private equity players including TPG Capital to sell a 25% stake in its REpower subsidiary in a deal that could fetch $500 million.
According to local reports citing sources close to the deal, Suzlon has separately discussed the potential sale with TPG Capital and an unnamed American energy fund, and the transaction could involve a mix of new REpower shares and a stake sale by Suzlon.
Suzlon completed its acquisition of REpower Systems - a Frankfurt Stock Exchange-listed turbine producer - in June 2009 from Portugese metal construction and renewable energy player Martifer Group, paying approximately INR575 crore ($123.4 million) to Martifer for its 24% stake, giving Suzlon nearly 91% control of REpower.
The news comes as Suzlon, one of the world’s five-largest wind-energy corporations, reported a dip in first-quarter sales to INR2,404 crore ($515.9 million) from INR4,175 crore ($900.4 million) a year earlier – a 42% drop. It further reported a drop in net profit by INR912 crore ($195.7 million) compared to its INR452 crore ($97 million) year-on-year loss by June 30, 2009.
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