Les Échos on January, 25th
Hi readers, here are some articles translated from French to English of French economic press in the energy sector.
Wind sector: Suzlon, the Indian company, discounts its European subsidiary
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| Courtesy Greentechlead |
Suzlon intended to
become a major actor on the European market.
By selling out the company formerly known as REpower
for €1 billion to an investment fund, Suzlon hopes to restore its financial
situation.
Thursday, Suzlon, the Indian wind
turbine manufacturer, announced the selling out of Senvion, its German
subsidiary for €1 billion. This decision puts an end to the
European adventure of the Indian group, which ranks fifth in the world wind
sector.
This wind energy specialist, located in
Pune, close to Bombay, made a sensation in 2007 when it took control of
REpower, a German turbine manufacturer far more important than Suzlon. The group intended to become a major actor on the European market
through this strategic acquisition, which it bought at a high price: €1,5 billion. This audacious choice did not bear
fruit. First, the world financial crisis of
2008 entailed a slowdown of the market, which the Indian group did not expect. Second, the acquisition was made mostly through indebtedness, which
deeply deteriorated Suzlon finances.
In 2012, the group could
not refund a convertible bond issue.
Suzlon has not made a good deal
By selling out REpower (renamed Senvion
in the meantime) for a third less than its purchasing price, Suzlon has not
made a good deal. Maybe it was the only way to restore its
financial balance. The amount of €1 billion paid by the
purchaser, namely Centerbridge Partners LP, an American investment fund, will
be used “to refund the indebtedness, thus decreasing Suzlon financial
expenses”, said Tulsi Tanti, the group CEO, on Thursday.
Discounting thus its European
investment, Suzlon unveils new priorities: the company intends to focus on the Indian market and on the markets
“facing a buoyant growth like the United States, China, Brazil, South Africa,
Turkey and Mexico”. With its reduced size, the new Suzlon aims
at centering on India particularly, in order to take advantage of the new
government’s ambitions in the renewables sector.
Going further...
http://www.senvion.com/fr/
(into French)
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