Suzlon has decided to sell that big thing it bought in the past: REPower . Now named Senvion , the German acquisition was the bane of Suzlon’s existence. After it bought REPower in 2008, it couldn’t get access to the underlying technology until it had bought out all minority shareholders, which happened only in 2012. And even then, it couldn’t use the Balance Sheet strength of the much larger German company because of German laws forbidding it. This chapter may have finally seen an end. Suzlon finally has sold Senvion to Centerbridge Partners, LP for a sum of 1 billion Euros or about Rs. 7500 cr.. This is way lower than the amount they spent to acquire it, which was 1.5 billion Euros. (Which, at the time, was Rs. 10,000 cr. Centerbridge is a PE fund that buys distressed assets, it seems . While Senvion was doing well, the problem was that Suzlon wasn’t – it couldn’t service the debt it had taken to acquire Senvion apart from other bad acquisitions.… (Read On…)
[via Capital Mind]
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