Suzlon Energy has upped the ante in the battle for REpower by increasing its offer to e150, or 7.14% higher than French giant Areva’s e140-per-share offer. The Tulsi Tanti company announced on Tuesday that its foreign joint venture with Martifer—Suzlon Wind Energie—raised the takeover offer for REpower Systems after its subsidiary purchased 7.7% in the German firm for that price.
ET had reported on March 16 that Suzlon, the fifth-largest wind energy firm in the world with a market share of 6%, is likely to revise its offer to buy out REpower, following the counter offer made by Areva, topping Suzlon’s earlier bid of e126 a share.
“The decision to increase the offer was taken after careful analysis and review of potential synergies that Suzlon can contribute to REpower, given our fully integrated business and control over component level technology and its integration with turbine technology,” Suzlon CMD Tulsi Tanti said.
A communiqué from Suzlon said SE Drive Technik, a company acting in concert with the bidding company, purchased REpower shares for up to e150 per share over the Easter weekend.
Thereby, the offer price of the public takeover offer of Suzlon Wind Energy made on February 28, 2007, has automatically been increased from e126 to e150 per share pursuant to the German Takeover Act. In total, Suzlon has acquired 627,000 REpower shares over the last weekend, corresponding to 7.7% of the share capital of REpower prior to the capital increase of REpower by up to 10%. The offer period expires on April 20, 2007, according to current conditions. The fresh offer from Suzlon constitutes a premium of 110% in comparison to the average weighted share price during the last three months prior to the announcement of Areva on January 23, 2007, to make a voluntary takeover offer for REpower.
Andre Horbach, group CEO of Suzlon based in the global headquarters at Amsterdam, said REpower remains a highly strategic asset from a geographical as well as onshore and offshore product mix point of view.
“The market has never been a concern for the entire industry and this will likely continue for the foreseeable future. Most of the industry faces challenges of a reliable and cost efficient supply chain and that is where the synergies with our vertically integrated supply chain are compelling. De-bottlenecking will lead to higher volumes for REpower at marginal costs, resulting in better operating margins. Together, we can strive for a top 3 position in all key wind markets,” said Mr Horbach.
Mr Tanti claimed that their existing credit facilities and internal accruals were sufficient to fund the obligations under the offer. “We have the support of our partner Martifer with whom we have a deferred purchase agreement.” Suzlon is being advised by Yes Bank and ABN Amro while Linklaters are the legal advisers.
ET had reported on March 16 that Suzlon, the fifth-largest wind energy firm in the world with a market share of 6%, is likely to revise its offer to buy out REpower, following the counter offer made by Areva, topping Suzlon’s earlier bid of e126 a share.
“The decision to increase the offer was taken after careful analysis and review of potential synergies that Suzlon can contribute to REpower, given our fully integrated business and control over component level technology and its integration with turbine technology,” Suzlon CMD Tulsi Tanti said.
A communiqué from Suzlon said SE Drive Technik, a company acting in concert with the bidding company, purchased REpower shares for up to e150 per share over the Easter weekend.
Thereby, the offer price of the public takeover offer of Suzlon Wind Energy made on February 28, 2007, has automatically been increased from e126 to e150 per share pursuant to the German Takeover Act. In total, Suzlon has acquired 627,000 REpower shares over the last weekend, corresponding to 7.7% of the share capital of REpower prior to the capital increase of REpower by up to 10%. The offer period expires on April 20, 2007, according to current conditions. The fresh offer from Suzlon constitutes a premium of 110% in comparison to the average weighted share price during the last three months prior to the announcement of Areva on January 23, 2007, to make a voluntary takeover offer for REpower.Andre Horbach, group CEO of Suzlon based in the global headquarters at Amsterdam, said REpower remains a highly strategic asset from a geographical as well as onshore and offshore product mix point of view.
“The market has never been a concern for the entire industry and this will likely continue for the foreseeable future. Most of the industry faces challenges of a reliable and cost efficient supply chain and that is where the synergies with our vertically integrated supply chain are compelling. De-bottlenecking will lead to higher volumes for REpower at marginal costs, resulting in better operating margins. Together, we can strive for a top 3 position in all key wind markets,” said Mr Horbach.
Mr Tanti claimed that their existing credit facilities and internal accruals were sufficient to fund the obligations under the offer. “We have the support of our partner Martifer with whom we have a deferred purchase agreement.” Suzlon is being advised by Yes Bank and ABN Amro while Linklaters are the legal advisers.
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