Suzlon Energy Ltd has raised its stake in Germany’s REpower Systems to 76 per cent, after paying Martifer 30 million euros ($40 million) last week, the company said on Monday.
In December, Suzlon, the world’s fifth-largest wind turbine maker, and Portugal’s Martifer entered into an agreement on a revised payment schedule for the latter’s 22.4 per cent stake in REpower.
The first tranche was acquired in December for 65 million euros and the third tranche of 175 million euros is payable this month.
Separately, Suzlon said its bondholders were split at a meeting last Wednesday on a proposal to restructure $500 million of zero coupon foreign currency convertible bonds (FCCBs). Under the plan, the bonds could be swapped for new convertible bonds, cash or receive certain fees to amend terms and conditions.
While holders of $300 million FCCBs due in June 2012 agreed to the company’s proposal, those holding $200 million FCCBs that mature in October 2012 disapproved the plan, a company spokesman said.
He could not provide more details.
At 1:39 p.m. (0809 GMT), shares in Suzlon, which has a market value of $1.9 billion, were up 4.5 per cent at 66.55 rupees in a Mumbai market that rose 6 per cent.
Over the past one year, the stock has tumbled 77 per cent, more than double the main index’s 31 per cent drop, as the company faced quality issues of its wind turbine blades and funding woes.
Source: Economic Times