Suzlon Energy said that the cash compensation for the transfer of shares from the minority shareholders of REpower Systems has been fixed at €142.77 per share. AE-Rotor Holding BV, a stepdown wholly owned subsidiary of Suzlon, will have to pay about € 63 million for the purpose of acquiring the minority stake.
After Suzlon bought the German wind maker REpower in FY-08, it hiked its stake to 90 per cent and subsequently to 95.16 per cent in 2011.
As per the German law, a shareholding of over 95 per cent permits the majority stakeholder to initiate a ‘squeeze-out proceedings' on the minority shareholders.
This called for Suzlon to approach the district court seeking an independent valuation. The valuation, acceptable to the court, would be the price at which Suzlon would have to buy the stake of the minority shareholders.
On getting the minority stakeholders' stake, Suzlon Energy, through its subsidiary would have total control over REpower. As part of the ‘squeeze-out' proceedings, AE-Rotor Holding has informed the Executive Board of REpower on Thursday that it had set the cash compensation for the minority shareholders share transfer of REpower to AE-Rotor Holdings. A resolution on the squeeze out is proposed to be passed at the annual general meeting of REpower scheduled on September 21, Suzlon said.
Once the buyout of the minority shareholders happens, REpower would become a stepdown wholly-owned subsidiary of Suzlon.
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