Suzlon sets a €63-mn tag for REpower stake buyout

New Delhi: Wind turbine maker Suzlon Energy has said it plans to purchase the remaining minority stake in German entity REpower Systems for €63 million.[caption id="attachment_46088" align="alignleft" width="380" caption="The squeeze-out will be subject to additional expenditure, completion of procedural steps and timing requirements as may be required as per German regulations. Amit Dave/Reuters"][/caption]The transaction would be done through Suzlon's step down wholly-owned subsidiary AE-Rotor Holding B V (AERH). Suzlon has 95.16 percent stake in REpower and now plans to buyout the remaining less than five per cent shareholding. "The total cash compensation payable by AERH to REpower minority shareholders is expected to be around €63 million" Suzlon said in a regulatory filing today.It said the squeeze-out will be subject to additional expenditure, completion of procedural steps (including court process) and timing requirements as may be required as per German regulations. A resolution on the squeeze-out is expected to be passed at the annual general meeting of REpower, which is to be held on September 21."Under German Stock Corporation Act, a shareholding of 95 percent in a German stock corporation enables the majority shareholder to initiate squeeze-out proceedings in respect of minority shareholders," Suzlon had said earlier this year.PTI