India’s Suzlon Energy Ltd. has raised about $120 million by selling as much as 4% stake in the company in a transaction managed by Citigroup, according to a report from the India Infoline.

The Tanti family, founders of Suzlon, has sold 60.69 million shares, or 4.1% of its equity capital, in a single transaction on the Bombay Stock Exchange on May 25, 2009. The stock fell 5.5% to close at INR88.8. The company’s promoters priced the shares at INR87 each, for a discount of 7.5% to the Friday closing price of INR94.1.

After the sale, the Tanti family now holds a 60% stake in Suzlon. The company plans to use the funds raised in the transaction to help finance its purchase of an additional stock in the German wind turbine manufacturer REpower Systems AG from Portugal’s Martifer SGPS SA. Suzlon already holds a 76% stake in REpower, and will increase its ownership to 91% once the transaction is fully paid.

The Tanti family had earlier issued a similar offering, selling about 30 million shares or 2% of the family’s stake in Suzlon. The family was able to raise INR2.3 billion in that transaction, and was left with a 64% stake in the company.

Suzlon Energy Ltd. is a leader in the wind energy industry, ranking as the fifth leading supplier of wind turbines in the world. The company has installed over eight gigawatts of wind turbine capacity in projects worldwide, and is currently developing Asia’s largest wind park in Dhule, Maharshtra with a capacity of over one gigawatt when completed. The company is based in India, with operations in 20 countries all over the world.

REpower Systems AG is one of the leading manufacturers of wind turbines for onshore and offshore applications. The company manufactures turbines with capacities ranging between two and 6.15 megawatts.


-  Natassia Y. Laforteza

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Sources:

¹ http://www.indiainfoline.com/news/innernews.asp?storyId=102542&lmn=1
² http://www.suzlon.com/FactSheet.html?cp=1_4
³ http://www.repower.de/index.php?id=38&L=1#