Suzlon completes Senvion sale

Suzlon Group has announced the completion of 100% stake sale of Senvion SE, a wholly owned subsidiary to Centerbridge Partners. The transaction closure follows the binding agreement signed with Centerbridge Partners on 22nd January 2015 for a total cash consideration of EUR 1 billion and future potential earn out of up to an additional EUR 50 million. The completion of the sale transaction has enabled Suzlon to raise approx. Rs. 7000 crs in cash, of which a substantial portion is intended to be utilized towards debt reduction and volume growth.

Suzlon Group's sale of Senvion SE is aligned with the group's strategy to reduce the debt and focus on the home market and high growth market like USA and emerging markets like China, Brazil, South Africa, Turkey and Mexico.

According to the agreement, Senvion to give Suzlon license for off-shore technologies for the Indian market and Suzlon to give Senvion the S111-2.1 MW license for the USA market. Speaking on the occasion, MR. TULSI TANTI, CHAIRMAN, SUZLON GROUP said, "We have taken some transformational steps in the recent past aligned to our strategic vision. By this step we have demonstrated our strong commitment to our lenders who have been hugely supportive to us. The successful completion of the transaction of Senvion sale, paves the way for the group to ramp up volumes rapidly. We are now in a strong liquidity position to tap the opportunity available in India, other emerging markets and USA."

Morgan Stanley & Co International acted as Financial Advisor to Suzlon for this transaction and a Linklaters team led by Düsseldorf based corporate partner Dr. Klaus Marinus Hoenig acted as Legal Advisors.