Suzlon to acquire REpower

Mumbai: Suzlon Energy, which holds majority stake in REpower Systems SE, today said shareholders of the German firm have approved the firm’s proposal to acquire remaining shares in the company.

REpower has approved Suzlon’s ‘squeeze-out’ proceedings to buyout minority shareholders, according to a regulatory filing.[caption id=“attachment_90199” align=“alignleft” width=“380” caption=“Suzlon Energy, chairman and managing director Tulsi Tanti. Danish Siddiqui/Reuters”]  [/caption]

The proposal was approved during REpower’s annual general meeting on 21 September.

The cash compensation value for REpower’s minority shareholders was kept at “142.77 euros per no-par value share”.

Suzlon has over 95 percent stake in REpower.

Under German laws, a shareholder with 95 percent stake has the right to “initiate squeeze-out proceedings in respect of minority shareholders”.

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On the approval, Suzlon Group Founder chairman and managing director Tulsi R Tanti said it was an important milestone in the ‘squeeze-out’ proceedings.

“… we welcome the passing of the resolution. However, due legal process continues and it will be inappropriate to comment further on this development. The proceedings will continue in full compliance with the German corporate law,” Tanti said.

Shares of Suzlon declined 7.65 percent to Rs 38.05 on the BSE.

PTI