Suzlon to buy out minority shareholder to completed acquisiton of Repower of Germany
22 Jul 2011
Wind-turbine maker Suzlon Energy Ltd said yesterday that it planned to acquire the less than 5 per cent stake it currently doesn't own in Germany's REpower Systems AG for about €63 million.
In April, the company hiked its stake in REpower to 95.16 per cent from 90.5 per cent and said its unit AE-Rotor Holding BV had initiated the process to complete they buyout of balance shares.
The proposal to buy out the minority shareholders is expected to be passed at the annual general meeting or Repower on 21 September.
Suzlon acquired a majority stake in REpower in 2007 to enter the European wind-energy sector and access the technological capabilities of the German company.
Suzlon, has since then been attempting to take over Repower fully, but the economic downturn delayed the process.
Trade in Repower shares has been suspended. Suzlon Energy, holding majority stake in REPower was up 3.35 per cent or Rs1.70 quoting at Rs52.45 following news that REPower would squeeze out shareholders.
According to REpower, Suzlon would have to pay €142.77/share to squeeze out shareholders. According to the company Squeeze Out resolution would be passed in its 21September AGM.