Suzlon to increase its holding REpower

Mumbai, Sep 2: Suzlon Energy Limited, the world's fifth largest wind turbine maker with 10.5 per cent of global market share, announced its intention to seek a domination and profit and loss transfer agreement between its German subsidiary SE Drive Technik GmbH and REpower Systems AG.

This agreement is slated to be completed by December 15, this year, and will consolidate Suzlon's total holding in REpower to approximately 90 per cent. Suzlon presently holds approximately 66 per cent of shares in REpower, and has signed an agreement with Martifer SGPS SA of Portugal for acquisition of Martifer's total stake in REpower, which will take Suzlon's holding in the company to approximately 90 per cent.

In a statement here on Tuesday, Sep 2 Suzlon Energy Limited Chairman and Managing Director Mr Tulsi Tanti, stated '' We have informed the REpower management of our intention to seek a domination and profit and loss transfer agreement, the process now will follow due course under German law. The domination and profit and loss transfer agreement follows naturally after our position as the largest shareholder in REpower, and will allow both companies to benefit from even greater synergies. We believe this will allow us to unlock great value and benefit both companies in the long term.'' Suzlon earlier signed an agreement with Martifer for acquisition of Martifer's total stake, approximately 22.48 per cent, in REpower for a total consideration of EUR 270 million. This agreement is slated to be completed by 15th December 2008, and will consolidate Suzlon's total holding in REpower to approximately 90 per cent.

UNI