Suzlon may complete REpower buy in 4 mths

Suzlon Energy is likely to complete the buyout of the balance 4.8% shares in Germany’s REpower Systems for € 63 million to make it a 100%-owned subsidiary in the next four months. At the annual general meeting of REpower, the shareholders of the company approved Suzlon’s buyout offer for minority shareholders. The buyout is crucial for the debt-ridden Suzlon Energy as it would enable it to have access REpower’s technology, cash and other assets.

If Suzlon can access Repower’s cash, its debt problems could get solved to a large extent. As on March-end, Suzlon had consolidated debt of Rs 12,263 crore. The company had standalone cash balance of   Rs 431 crore and consolidated cash balance, which includes the contribution of REpower of Rs 3,121 crore. In 2007, Suzlon Energy, through its subsidiary AE-Rotor Holding, acquired REpower Systems to expand its presence in Europe and to get access to the company’s technology.