Suzlon counters Areva bid for French Repower
Ahmedabad-based Suzlon Energy Ltd, the world?s fifth largest wind power energy company announced a bid for German wind turbine manufacturer Repower AG.india Updated: Feb 09, 2007 22:45 IST
Ahmedabad-based Suzlon Energy Ltd, the world’s fifth largest wind power energy company announced a bid for German wind turbine manufacturer Repower AG. The entire bid is valued at $1.33 billion (126 euros per share) and competes with another bid made by Areva on February 5, 2007.
While Areva already owns 29.9 per cent stake in Repower, it has bid for the remaining 70.1 per cent at 105 euros per share. For its bid, Suzlon has tied up with Portugese company Martifer which holds a 25.4 per cent stake in Repower.
Suzlon and Martifer will form a special purpose vehicle in which Martifer will own 25 per cent and Suzlon will own 75 per cent. This SPV will be making an offer for the 75 per cent of Repower that is currently not owned by Martifer.
Tulsi Tanti, the chairman of Suzlon told analysts today, “The entire share owned by Martifer in Repower as well as the SPV will be transferred to Suzlon. The total cost to acquire 100 per cent in Repower will be around $1.33 billion.”
Suzlon is looking at funding the takeover through internal accruals and debt, which will be raised with the help of Yes Bank and ABN AMRO.
Andre Horbach, CEO of Amsterdam-based Suzlon Group, says, “We feel there is a strong potential synergy between the existing Suzlon R&D and engineering department who currently work already out of Germany and the strong engineering capability at Repower.” He added, “Hamburg shall remain the headquarters of Repower and Germany will be developed as Suzlon’s worldwide headquarters for technology, R&D and the knowledge centre.”
The company relases said: “With the new combination, Suzlon intends to create 100 to 200 highly-qualified positions in R&D in Germany by the end of 2009. Repower currently employs 740 staff."