Suzlon signs agreement with Areva on REpower

Mumbai May 25: Suzlon Energy Ltd (Suzlon) and Areva have signed a binding agreement governing a framework regarding Suzlon and Areva's shareholding in REpower.

With this the bidding contest between Suzlon and Areva comes to an end.

The competition for REpower had started when Suzlon announced a competing public offer on February nine this year. Suzlon is supported in its bid by REpower's long-standing shareholder Martifer.

Suzlon Chairman and Managing Director Tulsi Tanti told reporters here today, ''We are delighted with the development. Given our arrangement with Areva, we now directly and through voting pool agreements already control over 60 per cent of REpower's capital and over the next one week will also know how many shareholders have finally tendered into our offer. We have the full support of REpower Management Board in making REpower grow faster and stronger and developing the offshore potential.'' Furthermore he said, ''With this acquisition Suzlon has emerged as a true global player with a strong footprint across all the key wind markets, a geographically diversified manufacturing base, turbine and component level R&D centers in Europe and the most vertically integrated company in this sector with significant manufacturing presence in low cost countries like India and China.

We have developed a differentiated business model successfully combining domestic organic growth with significant acquisitions each of which strengthen either our technological platform (Hansen) or our market reach and product suite (REpower's access into Europe and offshore business).'' Commenting on the Cooperation Agreement reached with Areva, Mr Tanti stated ''We expect Areva will continue to support the wind industry and growth of REpower. We also expect to extend our relationship with Areva in areas of T&D where they have global leadership.''

In a statement here, Suzlon Group CEO Andre Horbach said ''REpower is an extremely strategic asset and we have looked forward to this day for a fairly long time. The company is a highly focused technology player with very strong R&D and the capability to develop reliable and efficient products. This is clearly demonstrated in their commercially proven off-shore wind turbine products. The management has the right platform to really deliver the true potential of this business and we will work closely to propel REpower into leadership position in its key markets by supporting it with reliable and cost efficient Supply Chain, building the next generation of machines by integrating turbine R&D with component design and technology. REpower will also benefit from the cooperative strength of its strategic shareholders.''

UNI