Suzlon executives met banks on Monday to discuss and take permission for the sale because the foreign subsidiary’s shares were pledged with banks, under a corporate debt restructuring scheme approved earlier, sources said.
In a statement to the stock markets, Suzlon said its board had not approved any such transaction and the company was exploring options for liability management.
Media reports earlier said the firm was in talks with a clutch of Chinese companies and the New York-based Centerbridge Partners. Suzlon did not reply to a mail sent on Monday. Bankers said Centerbridge Partners had made an offer to Suzlon which needed to be ratified by banks.
The stock closed at Rs 17.48 on Monday; it has risen 53 per cent in six months as Suzlon takes steps to cut its consolidated debt of Rs 17,000 crore. If the board is not happy with the offer, Suzlon may revive plans to list abroad to help it reduce stake and repay debt.
Suzlon acquired REpower in December 2009 for Euro 1.5 billion and renamed it Senvion in 2013.
“We have to consolidate, achieve more growth and invest in technology to bring the cost of energy down. We do not require any acquisition but we are now focusing on the need for solar energy. No firm in the Indian market is providing end-to-end solar power solutions. Next financial year, we will begin offering both wind and solar parks,” Tanti had said.