Suzlon Concludes Sale of Two of its Solar Subsidiaries for ₹990 Million to CLP Wind Farms

Suzlon Energy has announced that it has concluded the sale two of its subsidiaries to CLP Wind Farms (India) Ltd (CLP). In a recent filing, Suzlon indicated that it is selling the enduring stake in its subsidiaries S.E Solar Limited (SE Solar) and Gale Solar Farms Limited (Gale) for contemplation of ₹765.5 million ($11.1 million) and ₹225.4 million ($3.3 million) respectively.

The BSE filing by the company detailed: “In terms of Share Subscription / Share Purchase and Shareholders’ Agreement executed by the company (Suzlon) and CLP Wind Farms (India) Private Ltd (CLP) with SE Solar Ltd and (b) Gale Solarfarms Ltd (Gale), the subsidiaries of the company, the Company has completed sale of securities of SE Solar and Gale held by the Company to CLP on March 25, 2019 and accordingly SE Solar and Gale have ceased to be subsidiaries of the Company.”

Suzlon also specified that the revenue of Gale for the financial year ending March 31, 2018, was ₹7.2 million ($104,178) and the net worth of Gale as on March 31, 2018, was ₹320.3 million ($4.65 million). The revenue of SE Solar for the same year was ₹544.3 million ($7.9 million) while the net worth of SE Solar was projected at ₹1.59 billion ($23.1 million).

In its declaration, Suzlon further that this transaction would not fall under the associated party transaction as CLP does not belong to either any promoter or promoter group or group of companies.