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Suzlon takes over REpower

11 Nov

At the end of October, Suzlon took over the remaining shares of its subsidiary Repower Systems SE in a squeeze out. The Indian turbine manufacturer previously held 95 percent of the subsidiary.

Repower stock is no longer being traded after the takeover.

At the general meeting of shareholders on September 21, 2011, the squeeze out – in which minority shareholders are forced out – was resolved. The process is possible once a single shareholder directly or indirectly holds 95 percent of the firm’s equity. Suzlon’s 100% subsidiary, AE-Rotor Holding B.V., now holds the shares for a cash prize of 142.77 euros per share. At the end of October, the transaction was entered in the commercial registry.

A spokesperson for Suzlon says that “getting out of the stock market was only the logical conclusion” now that the Group owns 100 percent of the firm. The remaining trading that takes place in November therefore only concerns cash compensation for minority shareholders. Suzlon remains listed on the Indian stock market.

In 2007, Suzlon took over a 90% majority of Repower for 1.3 billion euros. Just last September, the Indian firm wanted to sell these shares but fail to find an investor. Now, the original goal of taking over Repower entirely has finally been accomplished. The company spokesperson says the takeover will allow Suzlon to tap synergies, though there are no specific plans at the moment. In 2012, the license for the Repower brand expires. “Suzlon will then decide whether to rebrand,” the spokesman added.

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Posted by on November 11, 2011 in RENEWABLE ENERGY

 

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