Confirmed: Dilip Shanghvi to buy 23% in Suzlon for Rs 1800 crore

Dilip Shanghvi, the founder of Sun Pharmaceutical Industries, has agreed to buy a 23 per cent stake in Indian wind turbine maker Suzlon Energy for about Rs 1800 crore, the company said late on Friday. Shanghvi, India’s second-richest man, will pay Rs 1,800 crore through Dilip Shanghvi Family and Associates (DSA) for 100 crore new shares in Suzlon, issued by way of a preferential allotment. Shanghvi’s investment firm and Suzlon will also form a wind farm joint venture for the development of 450 megawatt (MW) of wind farms, the statement said. [caption id=“attachment_1662573” align=“alignleft” width=“300”]  Reuters[/caption] Loss-making Suzlon has been under pressure over the last few years due to a slowdown in global turbine sales and a growing debt pile. It was forced to restructure Rs 180 crore of debt after defaulting on a Rs 20,000 crore convertible bond redemption in 2012. The deal will provide Suzlon with much needed liquidity and the company said it would also use the cash to tap opportunities in India and growth markets like the United States, China, Brazil, South Africa, Turkey and Mexico. Suzlon shares have risen 15 percent in the past week on media reports of Shanghvi’s interest in investing in the company in a personal capacity. The company last week denied having received a proposal from Shanghvi. Suzlon sold its German unit Senvion SE to buyout firm Centerbridge Partners last month for 1 billion euros in an all-cash deal, part of the company’s plans to halve rupee debt by March 31. Reuters