India-based wind equipment manufacturer Suzlon Energy has received approval from its shareholders for the sale of its German subsidiary Senvion to US-based venture capital firm Centrebridge Partners.
The board of directors has also authorised the firm to issue up to Rs1bn ($16m) equity shares on a preferential basis.
Go deeper with GlobalData
The approval was granted to enable Suzlon Energy for making investments, offering loans, guarantees, and to provide securities beyond the prescribed limits.
Currently, the firm is presently under a corporate debt restructuring scheme for financial revival. It has received mandatory approvals from the Corporate Debt Restructuring Empowered Group (CDREG) as well for the divestment.
Suzlon had earlier announced about the possible divestment to be done for a minor loss, in order to bring down its debt, reports Business World.
In 2007, the German unit was acquired by the Indian company for Rs73bn ($1.17bn).
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataSuzlon group chairman Tulsi R Tanti said: "We will capitalise on our technological prowess, sustained market leadership of 18 years and best-in-class services to tap the immense growth opportunities in our home market, USA and other emerging economies."
Image: Suzlon gets board approval for sale of Senvion. Photo: courtesy of Suzlon Group
