Don’t miss the latest developments in business and finance.

Suzlon Energy jumps on pact to sell Big Sky wind farm

Image
Capital Market
Last Updated : Apr 09 2014 | 11:55 PM IST

Suzlon Energy jumped 7.38% to Rs 14.99 at 12:28 IST on BSE after the company said it has signed a definitive agreement to sell its 240 megawatts Big Sky wind farm in Illinois to EverPower Wind Holdings Inc.

The announcement was made during trading hours today, 9 April 2014.

Meanwhile, the S&P BSE Sensex was up 68.18 points or 0.31% at 22,411.63.

On BSE, so far 38.78 lakh shares were traded in the counter as against average daily volume of 14.64 lakh shares in the past one quarter.

The stock hit a high of Rs 15.05 and a low of Rs 14.05 so far during the day. The stock had hit a 52-week high of Rs 15.10 on 22 April 2013. The stock had hit a record low of Rs 5.72 on 28 August 2013.

The stock had outperformed the market over the past one month till 7 April 2014, surging 31.82% compared with the Sensex's 1.93% rise. The scrip had also outperformed the market in past one quarter, jumping 19.42% as against Sensex's 7.97% rise.

More From This Section

The small-cap wind turbine manufacturer has equity capital of Rs 497.63 crore. Face value per share is Rs 2.

Suzlon Energy today, 9 April 2014, announced the strategic sale of the 240 megawatts (MW) Big Sky Wind Farm in Illinois to EverPower Wind Holdings, Inc. Suzlon Group had recently acquired the Big Sky wind farm from Edison Mission Energy via their fully owned US-based subsidiary Suzlon Wind Energy Corp (SWECO). Suzlon Energy today announced that it has signed a definitive agreement with EverPower to sell the project located in Illinois, about 95 miles west of Chicago.

This acquisition of Big Sky by EverPower makes it the nation's 18th largest wind generator, with a combined capacity of 752 MW in the US in winder power generation, Suzlon said in a statement.

Duncan Koerbel, CEO of Suzlon Wind Energy Corporation and CTO of the Suzlon Group said, "We are very pleased to welcome EverPower to the Suzlon family of customers. The SWECO OMS tea m looks forward to partnering with EverPower to maintain the high standards of availability and reliability at Big Sky that we have seen since operations started at Big Sky four years ago".

James Spencer, President and Chief Executive Officer of EverPower said, "We are pleased to add this project to our portfolio. It fits into both our overall growth strategy and our strategy of building our portfolio in liquid markets like PJM".

"This sale of Big Sky Wind Farm to a sound long term investor like EverPower is an important part of our dis-investrnent strategy to hive off non-core assets, and the net proceeds of the sale will be used to fuel our business growth", said Mr. Kirti Vagadia, Group Head Finance at Suzlon.

Completed In. early 2011, the Big Sky Project utilizes 114 Suzlon 2.1 MW S88 turbines to generate enough electirk;ity per annum for nearly 50,000 homes while also offsetting over 225,000 tons of CO2 emissions.

EverPower Wind Holdings Inc., headquartered in Pittsburgh with offices in New York City and Bellefontaine, Ohio, is a developer, owner and operator of utility grade wind projects.

Suzlon Energy on Tuesday, 8 April 2014, said that its wholly-owned subsidiary, Senvion SE, signed an agreement in late March with a consortium of banks headed by BayernLB, Commerzbank Aktiengesellschaft and Deutsche Bank AG for a syndicated working capital facilities of Euro 850 million for the period of 3 years. This move enables Senvion SE to secure follow-on financing early for the credit facilities of Euro 750 miliion agreed in May 2012 for the period up to August 2014, Suzlon said.

In total, 14 international banks and credit insurance companies are participating in this financing with a term of three years, syndication of which was significantly oversubscribed, Suzlon said. Six globally reputed financial institutions and banks with excellent ratings have been added to the banks consortium. The financing structure remains largely unchanged and primarily consists of non-fund based (guarantee) facilities, Suzlon said in a statement.

Marcus A. Wassenberg, CFO of Senvion said, "This enhanced facility with long tenure is of significant importance for the growth of the company and the oversubscription of the same with new additions to the consortium clearly reflects strong confidence of global banks and credit insurance companies in business fundamentals, company management and strategy of the company".

Suzlon Energy reported a consolidated net loss of Rs 1075.25 crore in Q3 December 2013, lower than net loss of Rs 1154.53 crore in Q3 December 2012. Net sales rose 24.8% to Rs 5009.82 crore in Q3 December 2013 over Q3 December 2012.

The Suzlon Group is ranked as the world's fifth largest wind turbine supplier, in terms of cumulative installed capacity and market share, at the end of 2013. The company's global spread extends across Asia, Australia, Europe, Africa and North and South America with over 24,000 MW of wind energy capacity installed, operations across over 30 countries and a workforce of over 10,000. The Group -headquartered at Suzlon One Earth in Pune, India -comprises Suzlon Energy and its subsidiaries, including Senvion SE.

Powered by Capital Market - Live News

Also Read

First Published: Apr 09 2014 | 12:30 PM IST

Next Story