Suzlon makes $1.3-billion counter offer for REpower
Paris-based Areva, the No. 1 maker of nuclear reactors, offered e105 a share on February 5 for 70% of the German company.
By TNN |
MUMBAI: For India Inc, this may turn out to be another thrilling takeover battle. And it���s a familiar stage as an Indian corporate major and a French giant slug it out.
India���s largest wind power manufacturer, Suzlon Energy, is in talks to acquire German wind energy company REpower.
Senior company officials said Suzlon has made a public bid of e126 per share for REpower, outbidding Paris-based nuclear major Areva SA. Suzlon���s bid estimates the deal size at about $1.3 billion. Suzlon director Girish Tanti said his company has made a counterbid to Areva���s bid of e105 per share. ���The bidding process is likely to continue for 4-6 weeks,��� he said. Suzlon, if successful in the bidding, plans to fund the acquisition through a mix of debt and internal accruals.
Paris-based Areva, the No. 1 maker of nuclear reactors, offered e105 a share on February 5 for 70% of the German company. Shares of REpower surged as much as e26.48, or 23%, to e140. Speculation is strong that the French state-owned Areva may sweeten its bid.
Suzlon���s bid is being made in partnership with Martifer, a unit of Portugal-based Mota-Engil SGPS SA, which already owns a quarter of Repower.
REpower, Germany���s third-largest maker of wind-power equipment, reported a nine-month profit of e1 million compared with a year-ago loss of e8.3 million.
���Suzlon is partnering with Martifer, which is the second-largest shareholder of REpower. Martifer has a JV with REpower in Portugal. Suzlon and Martifer have signed a legally binding pact, which sets out the terms for this offer. The offer will be made through BidCo, in which Suzlon holds 75% and Martifer 25%. Suzlon will finance the offer and Martifer will support it,��� said Suzlon officials.
India���s largest wind power manufacturer, Suzlon Energy, is in talks to acquire German wind energy company REpower.
Senior company officials said Suzlon has made a public bid of e126 per share for REpower, outbidding Paris-based nuclear major Areva SA. Suzlon���s bid estimates the deal size at about $1.3 billion. Suzlon director Girish Tanti said his company has made a counterbid to Areva���s bid of e105 per share. ���The bidding process is likely to continue for 4-6 weeks,��� he said. Suzlon, if successful in the bidding, plans to fund the acquisition through a mix of debt and internal accruals.
Paris-based Areva, the No. 1 maker of nuclear reactors, offered e105 a share on February 5 for 70% of the German company. Shares of REpower surged as much as e26.48, or 23%, to e140. Speculation is strong that the French state-owned Areva may sweeten its bid.
Suzlon���s bid is being made in partnership with Martifer, a unit of Portugal-based Mota-Engil SGPS SA, which already owns a quarter of Repower.
REpower, Germany���s third-largest maker of wind-power equipment, reported a nine-month profit of e1 million compared with a year-ago loss of e8.3 million.
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���Suzlon is partnering with Martifer, which is the second-largest shareholder of REpower. Martifer has a JV with REpower in Portugal. Suzlon and Martifer have signed a legally binding pact, which sets out the terms for this offer. The offer will be made through BidCo, in which Suzlon holds 75% and Martifer 25%. Suzlon will finance the offer and Martifer will support it,��� said Suzlon officials.
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