Areva, French nuclear power plant developer, is likely to raise the offer price for German-based REpower Systems AG topping the 126 euro per share offer of Suzlon Energy and Martifer, a unit of Mota Engil SGPS. Areva, which is incorporated under French law as a public corporation, is in talks with the French economy ministry for increasing its earlier offer of 105 euro per share.
When contacted by ET, Hufnagel Charles, a spokesperson of Areva, said, “We are still reviewing the situation and no decision is taken yet.” Tulsi Tanti, chairman and managing director, Suzlon Energy, on Wednesday, refused to comment on the rumour that Suzlon is ready to hike offer price, if Areva increased its offer price.
According to a French newspaper, Areva is likely to announce its decision to hike offer price in a few days. While the supervisory board and management board of REpower have published their joint reasoned opinion concerning the $1.35 billion take-over offer of Suzlon, which the Indian wind power major submitted on February 28.
REpower board had initially accepted the 105 Euro per share bid from Areva, which is the largest existing shareholder with 29%. After the offer of Suzlon and Martifer, second largest shareholder in REpower with 25% stake, the board turned in favour of the combine and recommended the shareholders to consider the revised friendly offer. Mr Tanti claimed that they had a satisfactory meeting with the REpower management recently in Germany following the necessary approval from BaFin, the financial markets regulator.
REpower is one of the leading turbine producers in the German wind energy sector with a market share in excess of 10%. In 2006, the company has added 500 MW capacity and done business worth of almost 470 million Euro. “Through this acquisition, Suzlon can gain strong foothold in matured wind energy markets such as England, Germany, France and Spain. By synergising the technology of Suzlon and REpower, we can optimise the output. Moreover, Suzlon can increase the export of turbine components for REpower,” said Mr Tanti.
For the acquisition of REpower, both the companies had floated a company Suzlon Wind Energie GmbH in which Suzlon has 75% stake and the rest with Martifer. The offer period of the combine will end on April 20, 2007. “The purchase will be financed by raising long-term and short-term debt arranged by a consortium of banks led by ABN AMRO. A Euro currency loan of 750 million is already being finalised for the take-over,” said Mr Tanti.
REpower share price has moved up 3.05% on Frankfurt stock exchange at 135 euro while it was hovering below 90 Euro before the offer announcement of Areva on January 22. Areva share price is up 3.98% on Paris stock exchange at 680 Euro on Wednesday, at the time of going to press. On Wednesday, Suzlon share price went up 3.15% on BSE to close at Rs 1039.30.
When contacted by ET, Hufnagel Charles, a spokesperson of Areva, said, “We are still reviewing the situation and no decision is taken yet.” Tulsi Tanti, chairman and managing director, Suzlon Energy, on Wednesday, refused to comment on the rumour that Suzlon is ready to hike offer price, if Areva increased its offer price.
According to a French newspaper, Areva is likely to announce its decision to hike offer price in a few days. While the supervisory board and management board of REpower have published their joint reasoned opinion concerning the $1.35 billion take-over offer of Suzlon, which the Indian wind power major submitted on February 28.
REpower board had initially accepted the 105 Euro per share bid from Areva, which is the largest existing shareholder with 29%. After the offer of Suzlon and Martifer, second largest shareholder in REpower with 25% stake, the board turned in favour of the combine and recommended the shareholders to consider the revised friendly offer. Mr Tanti claimed that they had a satisfactory meeting with the REpower management recently in Germany following the necessary approval from BaFin, the financial markets regulator.
REpower is one of the leading turbine producers in the German wind energy sector with a market share in excess of 10%. In 2006, the company has added 500 MW capacity and done business worth of almost 470 million Euro. “Through this acquisition, Suzlon can gain strong foothold in matured wind energy markets such as England, Germany, France and Spain. By synergising the technology of Suzlon and REpower, we can optimise the output. Moreover, Suzlon can increase the export of turbine components for REpower,” said Mr Tanti.
For the acquisition of REpower, both the companies had floated a company Suzlon Wind Energie GmbH in which Suzlon has 75% stake and the rest with Martifer. The offer period of the combine will end on April 20, 2007. “The purchase will be financed by raising long-term and short-term debt arranged by a consortium of banks led by ABN AMRO. A Euro currency loan of 750 million is already being finalised for the take-over,” said Mr Tanti.
REpower share price has moved up 3.05% on Frankfurt stock exchange at 135 euro while it was hovering below 90 Euro before the offer announcement of Areva on January 22. Areva share price is up 3.98% on Paris stock exchange at 680 Euro on Wednesday, at the time of going to press. On Wednesday, Suzlon share price went up 3.15% on BSE to close at Rs 1039.30.
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