Wind turbine maker Suzlon Energy is all set to acquire the residual stake in German company REpower, to get 100 per cent control of the company. Raising the stake will give Suzlon control over REpower's cash and technology.
Under German law, the owner of 95 per cent stake in a company is entitled to a squeeze-out procedure where minority shareholders' stake can be acquired on a compulsory basis. Suzlon, both directly and indirectly, holds 95.16 per cent of the registered share capital of REpower. Since 2007, Suzlon increased its stake in the company by buying out other shareholders like Martifer and Areva. Its shareholding stood at 92 per cent in 2009.
The squeeze-out will be subject to additional expenditure, completion of procedural steps and timing requirements as may be required by German laws and regulations. Suzlon is raising $150 million through foreign currency convertible bonds (FCCBs), mainly to fund the acquisition.crackcrack
