Suzlon Energy Ltd, one of the world’s-largest wind turbine makers, has signed a definitive agreement with EverPower Wind Holdings Inc, to sell its recently acquired wind park Big Sky in the US, the company said in a stock market disclosure. The financial details of the deal are not disclosed.
Earlier this month, Suzlon through its wholly-owned US-based arm Suzlon Wind Energy Corp (SWECO) acquired the Illinois-based Big Sky Wind Farm from Edison Mission Energy (EME), in lieu of outstanding dues. It had sold the turbines to EME for Big Sky project in Illinois in 2009.
“This sale of Big Sky Wind Farm to a sound long-term investor like EverPower is an important part of our disinvestment strategy to hive off non-core assets, and the net proceeds of the sale will be used to fuel our business growth,” said Kirti Vagadia, group head – finance at Suzlon.
Operating since 2011, the wind park consists of 114 S88 turbines and with this acquisition, EverPower will become the 18th-largest wind power generator in the US, with a combined capacity of 752 MW.
Founded in 2002, Pittsburgh-headquartered EverPower is a developer, owner and operator of utility grade wind projects. Currently, the firm has seven operational wind facilities. EverPower has been owned by European PE firm Terra Firma Capital Partners since 2009 and is backed by British private equity financier Guy Hands.
Suzlon, which counts amongst its shareholders Citi Venture Capital International, has sold some assets in the recent past as part of its move to cut debt.
In the third quarter of the current fiscal, Suzlon raked in total income of Rs 5,052.20 crore compared with Rs 4,047.71 crore in the same period a year ago. Its net loss stood at Rs 1,075 crore against a loss of Rs 1,155 crore in the year-ago period.
Suzlon scrip was trading at Rs 14.96 on Wednesday, up 7.16 per cent on the BSE in a strong Mumbai market at 2.17 PM.
(Edited by Joby Puthuparampil Johnson)