Suzlon sells 10-per cent in Belgian subsidiary

02 January 2009

The world's fifth-largest wind turbine maker Suzlon Energy today said it has divested a 10-per cent stake in its wholly-owned Belgian subsidiary AE-Rotor Holding BV to London-based specialised investment firm Ecofin Limited, for an undisclosed sum.

AE-Rotor Holding makes wind turbine gearboxes.

The sale will help Suzlon raise funds to pay fund the purchase of Potugese firm Martifer's 22.48-per cent stake in German wid power firm REpower. It has been scouting for funds to raise its stake in REpower, after it deferred its Rs1,800-crore ($367 million) rights issue in October because of the freeze in the capital markets.

It was forced to negotiate a  revised payment schedule with the Martifer Group. As per the new terms, Suzlon will pay Martifer approximately €65 million in December 2008, €30 million in April 2009 and final tranche of €175 million in May 2009.

Upon completion of this transaction, Suzlon will reach ownership level of approximately 91 per cent in REpower and Martifer will no longer hold a stake in REpower.

As a  consequences of the sale of  67.01 million shares, Suzlon's stake in Hansen will reduce to to 61.28 per cent, while that of Ecofin, which already held a 1,62-per cent stake in the Belgian firm,  would rise to 11.62 per cent.