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Suzlon Completes Sale of German Subsidiary Senvion

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Wind power major Suzlon Group has said on Thursday (30 April) that it completed the divestment of its German subsidiary Senvion SE to Centerbridge Partners.  The transaction closure follows the binding agreement signed with Centerbridge Partners in January for a total cash consideration of EUR 1 billion and future potential earn out of up to an additional EUR 50 million. The sale of its 100 per cent stake in Senvion has enabled Suzlon to raise approximately Rs 7,000 crore in cash of which a substantial portion is intended to be utilized towards debt reduction and volume growth.
 
Suzlon's plan to sell Senvion was aligned with the group’s strategy to reduce the debt and focus on the home market and high growth market like US and emerging markets like China, Brazil, South Africa, Turkey and Mexico.   
 
According to the agreement, Senvion to give Suzlon license for off-shore technologies for the Indian market and Suzlon to give Senvion the S111-2.1 MW license for the US market. 
 
  “We have taken some transformational steps in the recent past aligned to our strategic vision. By this step we have demonstrated our strong commitment to our lenders who have been hugely supportive to us," said Tulsi Tanti, Chairman, Suzlon Group in a Thursday statement.  
 
"The successful completion of the transaction of Senvion sale, paves the way for the group to ramp up volumes rapidly. We are now in a strong liquidity position to tap the opportunity available in India, other emerging markets and the US,” he added.
 
Morgan Stanley and Company International was the financial advisor to Suzlon for this transaction and the Dusseldorf-based corporate partner Dr. Klaus Marinus Hoenig acted as legal advisors for the deal.

(Agencies)


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