India's Suzlon Energy completes REpower acquisition

MUMBAI, June 2 Sat Jun 2, 2007 4:55pm IST

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MUMBAI, June 2 (Reuters) - India's Suzlon Energy Ltd. (SUZL.BO) said on Saturday it had completed the acquisition of German wind turbine maker REpower RPWGn.DE and controlled 87.1 percent along with France's Areva and Portugal's Martifer in the company.

On May 25, Suzlon had said it hoped to control 75 percent of REpower and become the world's fourth largest wind-tubrine maker, after rival Areva CEPFi.PA did not raise its bid for the German company.

Last week, Suzlon and Areva, which were locked in a battle over REpower, decided to jointly run the German firm, after both separately failed to get a majority stake in it.

Suzlon said in a statement it held 33.85 percent in REpower after acquiring 25.46 percent more during an extended offer period for REpower's shares that ended on May 25.

Areva is the second-largest shareholder in REpower with 30.15 percent, while Martifer, a unit of Portugal's top builder Mota Engil EGL.LS, holds 23.08 percent.

Suzlon had offered 150 euros per REpower share, valuing the German firm at around 1.2 billion euros ($1.6 billion) while Areva, the world's biggest maker of nuclear power plants, did not raise its offer price from 140 euros per share.

While Areva has the option to sell its stake to Suzlon after one year, Martifer can sell its share within two years up to 265 million euros, also to Suzlon.

On Friday, shares in Suzlon ended flat at 1,285.40 rupees in a Mumbai market .BSESN that rose 0.18 percent.

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