Suzlon 'negotiating 25% sale of Repower'

INDIA: Troubled turbine manufacturer Suzlon is planning to raise funds by selling a 25% stake in German subsidiary Repower, according to reports.

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According to reports in the Indian press, Suzlon is in talks with private equity fund TPG Capital to sell the share for $500million. Suzlon owns 90.7% of Repower.

In November last year, Suzlon sold a 35% stake in subsidiary Belgian gearbox manufacturer Hansen, for $370 million, reducing its ownership from 61% to 26%.

Suzlon has refused to confirm or deny the reports with a spokesman stating it "not comment on speculative reports or market rumor". The story follows the announcement of disappointing second quarter results for the company.

The results, covering the period April 1 to June 30, saw Suzlon suffer a 42% decline in second quarter sales and losses of INR9.12billion. Additionally, Repower announced a 26% fall in sales for the same period, from €300.7million last year to €213.1million.

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