Suzlon agrees to sell Senvion SE for Rs 7200 crore; stock rallies 8%

NEW DELHI: Suzlon Energy Ltd surged as much as 7.9 per cent in trade on Thursday after the debt-ridden wind turbine maker informed BSE that Suzlon has signed binding agreement with Centrebridge Partners LP for 100% sale of Senvion SE.

Suzlon Group today signed a binding agreement with Centerbridge Partners LP, USA to sell 100% stake in Senvion SE, a wholly owned subsidiary of the Suzlon Group.

The deal is valued at EUR 1 billion or approx Rs. 7200 crores equity value in an all cash transaction and future earn out of upto an additional EUR 50 million (approx Rs 360 crs).

At 09:20 a.m.; Suzlon Energy pared some of the intraday gains but was still trading 3.2 percent higher at Rs 17.75 on BSE. It hit a low of Rs 17.65 and a high of Rs 18.60 in trade today.

The transaction is subject to Regulatory and other customary closing conditions. Senvion to give Suzlon license for off-shore technologies for the Indian market, Suzlon said in a filing with BSE.

The 100% stake sale of Senvion SE is in line with Suzlon's strategy to reduce the debt and focus on the home market and high growth market like USA and emerging markets like China, Brazil, South Africa, Turkey and Mexico.

The transaction is expected to be closed before the end of the current financial year.