Suzlon Rejects Report of Relisting Repower as ’Speculative’
Repower Systems SE may return to the stock exchange in May or June after Suzlon failed to sell the Hamburg-based unit to France’s Alstom SA (ALO), Manager Magazin said today, citing unidentified company officials.
“Our position remains unchanged,” Pune-based Suzlon said in an e-mailed response to Bloomberg News. “These are totally speculative reports.”
Suzlon extended gains after the report to close up 5.8 percent at 29.15 rupees in Mumbai. The wider BSE Sensitive Index rose 1.7 percent.
Suzlon said last month it’s exploring options including asset sales to meet $569 million in bond redemptions this year as losses widen. It delisted Repower in October after a four- year effort to buy the company starting in 2007.
The turbine manufacturer has loan repayments of $700 million due in the financial year starting April, HSBC Bank Plc analyst Charanjit Singh said in a March 5 note. That includes the $569 million in foreign currency convertible bonds that mature in June and October. The notes are set to miss their conversion into equity, according to data compiled by Bloomberg.
Under pressure from creditors, Suzlon Chief Executive Tulsi Tanti met several potential bidders for Repower including General Electric Co. (GE), Siemens AG (SIE) and Alstom, the Wall Street Journal reported March 15. Alstom Chief Executive Officer Patrick Kron and Suzlon denied they were in talks.
Suzlon can’t tap 750 million euros in financing raised by Repower on Feb. 29 to pay off debt, Repower said last week. That’s not allowed under its agreement with the banks for a 725 million-euro loan guarantee and 25 million-euro credit line, Repower said.
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