Suzlon Energy slips in red on stake sale talks in Senvion SE

NEW DELHI: Suzlon Energy Ltd slipped as much as 2 per cent in red on Tuesday, as the likely valuation is at a 40% discount to Suzlon's 2007 acquisition of Senvion, formerly called REpower, in 2007.

Debt-ridden wind turbine maker Suzlon is in advanced talks to sell its wholly owned German subsidiary Senvion SE to US-based private equity fund Centerbridge Partners for about 1 billion (Rs 7,150 crore), sources privy to the development said told ET.

At 10:00 a.m.; Suzlon was trading 1.4 per cent lower at Rs 17.25. It hit a low of Rs 17.15 and a high of Rs 17.95 in trade today.

Suzlon has a debt of over Rs 16,000 crore and is looking to retire as much as Rs 4,000 crore of debt by March 2015, Chairman Tulsi Tanti had told reporters on the sidelines of the Vibrant Gujarat Summit.

Analysts say retiring part of the large debt would be a big boost for the company. It continues to make losses due to the huge interest overhang although it has reported positive EBITDA for the past three consecutive quarters, added the report.