Senvion to buy Suzlon’s assets before LSE listing to raise around $600 million: Sources

Tulsi Tanti has finalized the turnaround plan for his debt-laden company, Suzlon Energy. Three sources with direct knowledge share that that it’s a multi-pronged approach which involves Suzlon’s asset sale to Senvion and fund raising at the German subsidiary level including a large listing on the LSE.

In the first step, Suzlon Energy is pl
anning to sell WTG ( Wind Turbine Generator) and OMS (Operations & Maintenance Services) businesses to its wholly-owned subsidiary, Senvion for close to $1 billion.

This will boost the German subsidiary’s valuation ahead of its IPO on the London Stock Exchange. Suzlon is planning to raise $600-700 mn by selling about 25% stake in Senvion, earlier called Repower. Suzlon expects a valuation of over $2 bn for the LSE listing.

Senvion is also gearing up to raise about $400 milion by issuing high yield bonds. All these would give enough cash to Suzlon to repay $1.8 bn debt to the CDR lenders. The entire plan is for the next 6 months and Suzlon has mandated JPMorgan, Morgan Stanley, Goldman Sachs and Deutsche Bank for the fund raising process.

Suzlon Energy’s spokesperson said, “As a policy, Suzlon group would not comment on market rumours. We as a group are working on rebalancing our capital structure and would announce to the market when the plans are finalised.”