January 22, 2015
Suzlon signs binding agreement with Centerbridge Partners LP for 100% sale of Senvion SE
- Equity value of EUR 1 Billion (approx Rs. 7200 Crs) for 100% stake sale in an all cash deal and Earn Out of EUR 50 Million (approx Rs. 360 Crs)
- Senvion to give licence to Suzlon for off-shore technology for the Indian market
- Suzlon to give license to Senvion for S111- 2.1 MW technology for USA market
- Sale Proceeds to be utilised towards debt reduction and business growth in the key markets like India, USA and other Emerging markets
Pune, India: Suzlon Group today 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
deal is valued at EUR 1 billion (approx Rs. 7200 Crs) equity value in an all cash transaction
and future earn out of upto an additional EUR 50 million (approx Rs 360crs). The transaction
is subject to Regulatory and other customary closing conditions. Senvion to give Suzlon
license for off-shore technologies for the Indian market. Suzlon to give Senvion the S111-2.1
MW license for the USA market. The 100% stake sale of Senvion SE is in line with Suzlons
strategy to reduce the debt and focus on the home market and high growth market like USA
and emerging markets like China, Brazil, South Africa, Turkey and Mexico. The transaction is
expected to be closed before the end of the current financial year.
Mr Tulsi Tanti, Chairman, Suzlon Group said, We are pleased to announce this
development which is in line with our strategic initiative to strengthen our Balance Sheet.
The proceeds would be used for debt repayment thereby reducing interest cost and
augment business growth.
We will focus on high growth markets like India, USA and other emerging economy markets.
The Indian governments significant thrust on renewable energy offers a conducive policy
framework to the sector which Suzlon is best equipped to capitalise. Suzlon will offer its
wind and solar hybrid technology solutions to contribute towards achieving countrys target
of sustainable energy for all. With our market leadership, right technology, proven project
execution capabilities and best in class services, we are best positioned to tap the high
growth potential in home market.
Suzlon Group is proud to have played a significant role in Senvions growth story, making it
globally competitive driven by state of the art technology. Over the years, both Suzlon and
Senvion have mutually benefited and added value to each others growth and development
and sharing of best practices.
Stefan Kowski, Managing Director at Centerbridge, said, Senvion is a company with
impressive technology and leading market positions. The global market environment for
renewable energies is promising for a wind turbine manufacturer, particularly for one of the
most experienced players in the industry with onshore and offshore capability. We are
confident that Senvion will continue its track record and, together with the Companys
management, we look forward to supporting its continued development as a profitable and
growing company.
