Suzlon pays 30 mn euro for REpower stake

Suzlon Energy Ltd, India’s largest maker of wind turbines, paid €30 million (around Rs200 crore) to Martifer SGPS SA as part payment for a stake in a REpower Systems AG, the Portuguese company said in a statement on its website. The money was received on Thursday. Suzlon needs to pay the remaining €175 million this month to complete the purchase of the 22.4% stake in REpower, Martifer said. Suzlon paid €65 million in December as the first instalment for the stake, Martifer said.

Source: Livemint

Private equity placement likely to happen in Suzlon

The long awaited private equity placement in Suzlon is gathering steam. Stake sale talks have entered the last leg. A few significant names doing rounds include TPG and Carlyle among others. The equity dilution is likely to be more than 10%, but an open offer is unlikely. However, there has been no official comment yet on the likely PE names.

Suzlon to repay loans of close to USD 200 million which they have to pay in two tranches. In the first tranch, which in April they have to pay USD 30 million and the bigger chunk of USD 175 million has to get paid before May. So my sense is that that is why they are hurrying up and the deal may get stuck by end of this month or early April because that is where the pressure is going to be on Suzlon to repay this debt for Martifer.