Suzlon Energy-controlled REpower Systems SE has completed the ‘squeeze-out’ of its minority shareholders with the resolution being entered into the commercial register. Minority shareholders of REpower hold the remaining 5 per cent that Suzlon does not own in the German firm. Suzlon said in September that it would acquire the remaining stake at €142.77 per share, putting the total value of the transaction at approximately €63 million ($86 million).
“By the registration of the ‘squeeze-out’ resolution with the commercial register, all shares of the minority shareholders of REpower Systems SE have been transferred to AE-Rotor Holding B.V. (a Suzlon subsidiary) as a matter of law,” Suzlon said in a statement. “The stock exchange delisting of the shares of REpower Systems SE will proceed in due course. The stock exchange trading is taking place until such termination is a trade with the cash compensation rights of the minority shareholders only,” it added.
The share price of Suzlon Energy closed at Rs 38.5 on Friday, up 4.9 per cent in a Mumbai market up nearly 3 per cent.
The completion of the ‘squeeze-out’ came as Suzlon also concluded the sale of its remaining 26.06 per cent stake in Belgium-based Hansen Transmissions International NV to German engineering firm ZF Friedrichshafen AG for Rs 890 crore (GBP 115.25 million) earlier this month. Hansen is a London Stock Exchange-listed wind turbine gearbox and industrial gearbox designer, manufacturer and supplier, which was acquired by Suzlon in 2006.
Suzlon had acquired stake in Hansen and REpower during 2006-2008 but had to start a debt recast programme as its borrowings increased to $2.5 billion during mid-2009. Since then, the firm has been cutting its stake in Hansen while increasing its holding in REpower, in order to take the latter private.
Suzlon Energy reported 1.5 per cent fall in consolidated revenue at Rs 17,879 crore, with EBITDA up 14.9 per cent to Rs 808 crore for FY11, according to an investor presentation on its website. Suzlon had a total order book of 4,639 MW including REpower, totalling $6.7 billion.