Suzlon may raise bid for REpower
After the first announcement of Areva’s offer in January 22, the REpower share price climbed 96%.
By Nevin John, TNN |
MUMBAI: Suzlon Energy, the fifth-largest wind energy firm in the world with a market share of 6%, is likely to revise its offer to buy out German wind-turbine builder REpower, following the counter offer of e140 per share made by French rival Areva on Thursday.
According to sources, the company is in talks with a consortium of banks led by ABN Amro and may come out with a revised offer of close to e160 per share, which will raise the value of REpower to $1.7 billion. Areva’s revised offer has raised the value of REpower to $1.5 billion. The new offer is at a premium of 33% to its initial offer price of e105 per share.
Suzlon Energy CMD Tulsi Tanti said, “We will respond to Areva’s counter offer after getting complete information.”
Sources said, “The company is keen on the European market, where REpower has a strong visibility. Moreover, REpower is expanding its base in overseas markets such as Japan, China and Australia.”
REpower, Germany’s third-largest maker of wind-power equipment behind Vestas Wind Systems and Enercon, reported a profit of e7.1 million in 2006. In Germany, REpower has a 10% market share.
On Thursday, REpower shares rose 11.81% to e148.50 at 1.30 pm on the Frankfurt stock exchange. Areva was down by 1.37% at 1.40 pm on the bourse. Suzlon’s share price dipped 2.48% to Rs 1,019.70 on BSE. After the first announcement of Areva’s offer in January 22, the REpower share price climbed 96%.
According to sources, the company is in talks with a consortium of banks led by ABN Amro and may come out with a revised offer of close to e160 per share, which will raise the value of REpower to $1.7 billion. Areva’s revised offer has raised the value of REpower to $1.5 billion. The new offer is at a premium of 33% to its initial offer price of e105 per share.
Suzlon Energy CMD Tulsi Tanti said, “We will respond to Areva’s counter offer after getting complete information.”
Sources said, “The company is keen on the European market, where REpower has a strong visibility. Moreover, REpower is expanding its base in overseas markets such as Japan, China and Australia.”
REpower, Germany’s third-largest maker of wind-power equipment behind Vestas Wind Systems and Enercon, reported a profit of e7.1 million in 2006. In Germany, REpower has a 10% market share.
On Thursday, REpower shares rose 11.81% to e148.50 at 1.30 pm on the Frankfurt stock exchange. Areva was down by 1.37% at 1.40 pm on the bourse. Suzlon’s share price dipped 2.48% to Rs 1,019.70 on BSE. After the first announcement of Areva’s offer in January 22, the REpower share price climbed 96%.
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