Suzlon sells stake to Sun Pharma founder for €254mn

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Wind energy firm Suzlon has sold 23 percent of its stake to Dilip Shanghvi, the Indian billionaire for approximately INR 18bn (€254 m) equity injection.

Suzlon will maintain 24 percent of the shares in the company, retaining the management control by virtue of pooling arrangement for voting.

In addition, Dilip Shanghvi Family and Associates (DSA) and Suzlon will also form a joint venture with an aim to develop 450 MW of wind farm projects a “stipulated” time period.

DSA will be providing incremental project specific non-fund based working capital facility for execution of the project.

According to Shanghvi, this acquisition denotes efforts on part of the management to achieve better operating performance with an aim to emerge as a leader in the Indian renewable energy market.

“All the strategic initiatives are extremely crucial and will pave the way for our growth. These bold steps will strengthen our capital structure permanently, enabling significant deleveraging and liquidity to ramp up volumes rapidly,” said Tulsi Tanti, chairman, Suzlon.

Suzlon is planning to enter into the new financial year 2016 with a strong liquidity position to tap the renewable growth potential in India, US, China, Brazil, South Africa, Turkey and Mexico.

Last month, Suzlon sold its German unit to Centerbridge Capital Partners for $1.2 billion.

The company that suffered India’s biggest convertible-bond default in 2012 wanted to take the payment in cash as part of debt re-organizing. The deal is expected to be completed before the end of March.

Shanghvi, the founder and managing director of multinational firm Sun Pharmaceuticals, was ranked as India’s second wealthiest man by Bloomberg in October 2014.

For Shanghvi and family, this renewable portfolio investment will help expand business interest beyond pharma.

Sabeena Wahid
editor@greentechlead.com

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