Suzlon Group today signed a binding agreement with Centerbridge Partners LP, USA to sell 100% stake in Senvion SE, a wholly owned subsidiary of the Suzlon Group. The deal is valued at EUR 1 billion (approx Rs 72 billion) equity value in an all cash transaction and future earn out of upto an additional EUR 50 million (approx Rs 3.60 billion).
The transaction is subject to Regulatory and other customary closing conditions. Senvion to give Suzlon license for off-shore technologies for the Indian market. Suzlon to give Senvion the S111-2.1 MW license for the USA market. The 100% stake sale of Senvion SE is in line with Suzlon's strategy to reduce the debt and focus on the home market and high growth market like USA and emerging markets like China, Brazil, South Africa, Turkey and Mexico. The transaction is expected to be closed before the end of the current financial year.
Tulsi Tanti, chairman, Suzlon Group said, ''We are pleased to announce this development which is in line with our strategic initiative to strengthen our Balance Sheet. The proceeds would be used for debt repayment thereby reducing interest cost and augment business growth.
We will focus on high growth markets like India, USA and other emerging economy markets. The Indian government's significant thrust on renewable energy offers a conducive policy framework to the sector which Suzlon is best equipped to capitalise. Suzlon will offer its wind and solar hybrid technology solutions to contribute towards achieving country's target of 'sustainable energy for all'. With our market leadership, right technology, proven project execution capabilities and best in class services, we are best positioned to tap the high growth potential in home market.
Suzlon Group is proud to have played a significant role in Senvion's growth story, making it globally competitive driven by state of the art technology. Over the years, both Suzlon and Senvion have mutually benefited and added value to each other’s growth and development and sharing of best practices.''
Shares of the company gained Rs 0.11, or 0.64%, to trade at Rs 17.30 at the BSE (09.32 a.m., Thursday).
