Suzlon Energy may offload part stake in REpower

21 May 2008

Mumbai: Wind power company Suzlon Energy is weighing plans to sell a part of its stake in Germany's Repower, reports quoting its chirman and managing director Tulsi Tanti said.

''We are holding a 33.85 per cent stake in REpower,'' Tanti said while announcing the company's results on Tuesday. ''We can translate this value into huge value creation for our stakeholders,'' he added.

Tanti, however, did not elaborate on the proposed value unlocking.

Suzlon Energy had acquired the stake in REpower, a pioneer in offshore wind energy turbine technology, at 150 euros per share. The shares have since gained 90 per cent and are currently quoting at 238 euros in the Frankfurt market.

Suzlon Energy has been hard put to obtain technology from the German company despite holding a high stake. German law forbids any shareholder to have any special rights over information or technology.

REpower and Suzlon, meanwhile, set up a joint venture technology centre in Germany to explore new frontiers in wind energy. Technology developed at the centre would be made available to both the companies.