Areva sells Repower stake to Suzlon

Google Translate

French nuclear giant Areva has sold its 30% stake in German wind turbine maker Repower to India's Suzlon for more than EUR 350 million. The transaction concludes an agreement from May last year when Suzlon won a takeover battle for Repower between the two, which gave Areva the option of selling its shares to the Indian firm at a guaranteed price. Areva has since acquired a 51% stake in Multibrid, another German turbine manufacturer. Multibrid makes 5 MW units for the offshore market. "Acquiring Multibrid gave us a firm foothold on the offshore wind market and access to state-of-the-art technology. It therefore made sense for us to sell our stake in Repower," says Areva. The company acquired a 21.1% share in Repower in 2005 when the turbine builder was in financial difficulty. Areva's exit consolidates Suzlon's holding in Repower to around 66%. Portuguese construction company Martifer holds 23%, although a pooling arrangement means its voting rights lie with Suzlon. After May 25, 2009, the Indian firm is allowed to ask Martifer to sell it its stake for EUR 131 a share, as agreed in the original takeover deal. Martifer can also ask Suzlon to buy out as of that date at the same price. Suzlon provided Martifer with a bank guarantee "issued as guarantee of fulfilment of its obligations arising from Martifer's sell option." Martifer classes its stake as a non-current asset available for sale. The remaining 13.5% of Repower shares are in free float.

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Sign up now
Already registered?
Sign in

Windpower Monthly Events

Latest Jobs