Wind turbine major Suzlon Energy has acquired Areva?s entire stake of 30% in REpower Systems AG of Germany. This acquisition consolidates Suzlon?s total holding in REpower to approximately 66%. Suzlon also enjoys voting rights of approximately 89% through its voting pool agreement with Martifer of Portugal, the other major shareholder in REpower, subject to certain minority protection and other rights.
Speaking on the development, Tulsi Tanti, chairman and managing director of Suzlon Energy, said, ?This is an important step forward clearly demonstrating our unchanged long-term commitment towards REpower.? However, the company has not disclosed the amount at which it has acquired Areva?s stake.
Suzlon had overpowered Areva to buy REpower in May last year for euro 1.35 billion (about Rs 7,314 crore). The deal was structured in such a manner to allow Suzlon to purchase Martifer’s stake within two years for a fixed price of euros 265 million (Rs 1,766 crore). The company had inked a bidding deal which would give Suzlon voting rights of Areva and after one year, Areva has the option to sell its shares to Suzlon at the prevailing price.
One year after, French state-owned nuclear energy group, Areva, conceded defeat to Suzlon Energy Limited and backed off from the bidding war to take over German turbine maker, REpower Systems AG, the company has exited now exited the company leaving the turf to Suzlon. This gives Suzlon the all important access to the REpower technology which it will now be able to do as it is a majority owner.
Suzlon’s move to acquire 30% stake of Areva is important as on May 20 Tanti had hinted that Suzlon may part sell is equity in REpower to create value. However, Tanti did a flip-flop and said that Suzlon has yet to take a decision in this regard.