Suzlon Wind Energie GmbH – the bidding company of Suzlon and Martifer – increases its offer price for the shares of REpower Systems AG, offering EUR 150 per share of the wind energy producer located in Hamburg.

SE Drive Technik GmbH, a company acting in concert with the bidding company, purchased REpower shares against a consideration of up to EUR 150 per share over the Easter Holidays. Thereby, the offer price of the public takeover offer of Suzlon Wind Energy made on 28 February 2007 has automatically been increased from EUR 126 to EUR 150 per share pursuant to the German Takeover Act (WpÜG). In total, Suzlon secured 627,000 REpower shares over the Easter holidays. This corresponds to 7.7 per cent of the share capital of REpower prior to the capital increase of REpower by up to 10 per cent.

The increased cash offer represents:

- a premium of 7.1 per cent in comparison to the offer of Société des Participations du Commisariat à l’Energie Atomique (Areva) increased on 15 March 2007;

- a premium of 19.0 per cent in comparison to the consideration initially offered by Suzlon Windenergie GmbH;

- a premium of 68.4 per cent in comparison to the average weighted share price during the last three months period prior to the announcement of Suzlon Windenergie GmbH on 9 February 2007 to make a voluntary takeover offer for REpower

- a premium of 109.9 per cent in comparison to the average weighted share price during the last three months period prior to the announcement of Areva on 23 January 2007 to make a voluntary takeover offer for REpower.

The offer period expires, according to current conditions, on 20 April 2007 (24:00 CET).

Mr Tulsi Tanti, Chairman & Managing Director of Suzlon comments, “Our offer price of EUR 150 per REpower share is very attractive for all shareholders. The decision to increase the offer was taken after careful analysis and review of potential synergies which Suzlon can contribute to REpower given our fully integrated business and control over component level technology and its integration with turbine technology.”

Furthermore he emphasizes “We are happy that the Management of REpower has supported our industrial plan and strategy. We have already commenced a working relationship in several aspects of the business and are confident of achieving a steady reduction in raw material costs for REpower. We clearly see REpower emerging stronger and Suzlon will be one of the key catalysts in its future development.”

Mr Andre Horbach, Group CEO of Suzlon based in the global headquarters in Amsterdam added “REpower remains a highly strategic asset from a geographical as well as onshore and offshore product mix point of view. The market has never been a concern for the entire industry and this will likely continue for the foreseeable future.

Most of the industry faces challenges of a reliable and cost efficient supply chain and that is where the synergies with our vertically integrated supply chain are compelling. De-bottlenecking will lead to higher volumes for REpower at marginal costs resulting in better operating margins. Together, we can strive for a top 3 position in all key wind markets.” He also added “Our existing credit facilities and internal accruals are sufficient to fund our obligations under the offer. We have the support of our partner Martifer with whom we have a deferred purchase agreement.”

Suzlon is being advised by Yes Bank, India and ABN AMRO. Linklaters are the Legal Advisers.  

Sourced From: Adfactors Public Relations Pvt Ltd