Wind turbine maker Suzlon Energy on Thursday said it has completed 100 percent stake sale of its German arm Senvion to US-based Venture Capital fund Centerbridge Partners.
In a BSE filing, Suzlon Group said it has completed "100 percent stake sale of Senvion SE, a wholly-owned subsidiary to Centerbridge Partners". It further said: "The transaction closure follows the binding agreement signed with Centerbridge Partners on 22nd January for a total cash consideration of 1 billion euro and future potential earn out of up to an additional 50 million euro."
Debt-laden Suzlon had announced selling of its German subsidiary for a minor loss mainly to cut debt.
Suzlon had acquired Senvion (earlier known as REpower) for over Rs 7,300 crore in 2007. Suzlon Group said sale of Senvion SE is aligned with its strategy to reduce the debt and focus on the home market and high growth market like US and emerging markets like China, Brazil, South Africa, Turkey and Mexico.
"The completion of the sale transaction has enabled Suzlon to raise around Rs 7,000 crore in cash, of which a substantial portion is intended to be utilised towards debt reduction and volume growth," it added.
"The successful completion of the transaction of Senvion sale, paves the way for the group to ramp up volumes rapidly. We are now in a strong liquidity position to tap the opportunity available in India, other emerging markets and the US," Suzlon Group Chairman Tulsi Tanti said.
Morgan Stanley acted as the financial advisor to Suzlon for this transaction and a Linklaters team led by Dusseldorf based corporate partner Dr. Klaus Marinus Hoenig acted as legal advisors. Suzlon Energy shares were trading 0.42 percent up at Rs 24.10 apiece in the morning session on the BSE.
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