Sterling Infotech acquires 40% stake in Finland's Winwind
New Delhi, Aug 31 (UNI) Sterling Infotech Group (SIG) today announced its foray into renewable energy space with the acquisition of 40 per cent stake in Finland-based manufacturer of wind turbines Winwind Oy.
SIG through its Mauritius subsidiary Avis Ventures Ltd (Avis) has become Winwind's largest individual shareholder with 40 per cent ownership. The transaction dynamics involve infusion of funds of Euro 20 million into Winwind for a 36.36 per cent investment with the balance 3.64 per cent being acquired from the existing shareholders.
''Winwind has state-of-the-art technology, which provides wind power investors with superior returns on their investment. We believe that SIG's in-depth market and business knowledge can bring value beyond the capital investment especially in the areas of procurement and market development in India and other Asian markets,'' SIG Director V Srinivasan said.
The group also has plans for significant investments in the renewable energy and hybrid fuels (such as Ethanol-based) and is expected to make some investments shortly.
Standard Chartered Bank acted as the sole financial advisor to SIG on this transaction.
''SIG's international network will further accelerate Winwind's growth and value creation potential. The participation of a major Indian investor with long-term focus and commitment to the business enhances Winwind's credibility in the international market place,'' Winwind Chairman Matti Vuoria said.
The other main shareholders of Winwind include Proventia Group Oy, Head Invest Oy, Powest Oy, Finnish Industry Investment Ltd, and Mutual Pension Insurance Company Varma, who are large institutional investors in Finland.
Winwind offices are located in Oulu and Helsinki and assembly plants in Ii and Loviisa in Finland. The company has subsidiaries in Portugal, Estonia and China.
The company has aggressive plans to spread its wings in new markets like India, Brazil and select markets in the European Union as well as South America. It is expecting to have a topline growth of EURO 45 million for the year-ending 2006. It has pending orders for 75 MW of wind turbine generators worth around EURO 75 million.
SIG, a diversified global group, has interests in telecom services and food and beverages business. Post the divestiture of its telecom businesses to Maxis in March 2006, SIG has been pursuing investment opportunities in other areas including real estate, engineering and construction, and e-governance initiatives both in India and abroad.
UNI CS KD KN1224