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Shares of Suzlon Energy pared early gains and were down over 4% at Rs 16.45 on revenue generation concerns post the sale of its German-based subsidiary Senvion SE, which contributed major portion of its business.
For FY14, Senvion contributed Rs 13,759 crore, or 65 per cent of the consolidated revenue.
In 2009, Suzlon acquired Senvion, earlier known as REpower, for Euro 1.5 billion. However, it was unable to make money from the acquisition, as complaints of faulty products increased, resulting in lower sales and profits.
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(Updated at 9:23AM)
Shares of Suzlon Energy were trading higher by 3% to Rs 17.70 on NSE, erasing its early morning gain after the company Suzlon Group has signed a binding agreement with Centerbridge Partners LP, USA to sell 100% stake in Senvion SE, a wholly owned subsidiary of the Suzlon Group.
The stock opened at Rs 18 and touched high of Rs 18.55 on BSE. Till 0923 hours, a combined around 32 million shares changed hands on the counter on NSE and BSE.
The deal is valued at EUR 1 bn (Rs 7,200 crore) in an all cash transaction and future earn out of up to an additional EUR 50 mn (Rs 360 crore). The transaction is expected to be closed before the end of the current financial year and is subject to regulatory and other customary closing conditions.
The company will focus on high growth markets like India, USA and other emerging economy markets. The Indian government‘s significant thrust on renewable energy offers a conducive policy framework to the sector which Suzlon is best equipped to capitalize, said Tulsi Tanti, Chairman, Suzlon Group.
For FY14, Senvion contributed Rs 13,759 crore, or 65 per cent of the consolidated revenue.
In 2009, Suzlon acquired Senvion, earlier known as REpower, for Euro 1.5 billion. However, it was unable to make money from the acquisition, as complaints of faulty products increased, resulting in lower sales and profits.
_____________________
(Updated at 9:23AM)
Shares of Suzlon Energy were trading higher by 3% to Rs 17.70 on NSE, erasing its early morning gain after the company Suzlon Group has signed a binding agreement with Centerbridge Partners LP, USA to sell 100% stake in Senvion SE, a wholly owned subsidiary of the Suzlon Group.
The stock opened at Rs 18 and touched high of Rs 18.55 on BSE. Till 0923 hours, a combined around 32 million shares changed hands on the counter on NSE and BSE.
The deal is valued at EUR 1 bn (Rs 7,200 crore) in an all cash transaction and future earn out of up to an additional EUR 50 mn (Rs 360 crore). The transaction is expected to be closed before the end of the current financial year and is subject to regulatory and other customary closing conditions.
The company will focus on high growth markets like India, USA and other emerging economy markets. The Indian government‘s significant thrust on renewable energy offers a conducive policy framework to the sector which Suzlon is best equipped to capitalize, said Tulsi Tanti, Chairman, Suzlon Group.
