IDFC may trade stake in SE Forge for shares in parent Suzlon Energy
IDFC Private Equity has submitted a proposal that, if approved, would allow it to exchange its 17.1% stake in Suzlon Energy’s subsidiary SE Forge Ltd. for 31.99 million shares in Suzlon Energy in a no-cash transaction.
Suzlon, India's most prominent wind turbine maker, is said to be considering the deal. The shares would be sold for INR2 apiece, which would be worth approximately INR183.5 crore ($41.4 million) as of Suzlon's closing price on Friday of INR57.35 ($1.29) per share. According to local reports, IDFC bought its stake in SE Forge, Suzlon's forging and casting-product unit, for INR400 crore ($90.3 million) two years ago.
In August, reports surfaced that Suzlon Energy also opened talks with private equity players to sell a 25% stake in its REpower subsidiary in a deal that could fetch $500 million. That news came 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.
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