Suzlon to take full control of REpower, issue FCCBs

Wind turbine maker Suzlon Energy plans to take full ownership of Germany's REpower Systems AG after raising its stake to more than 95%, which allows it to start the process of squeezing out minority shareholders.

Also on Monday, Suzlon said it has launched a five-year foreign currency convertible bond with a conversion floor price of Rs 46.05. It did not provide the size of the bond issue. Suzlon shares rose 2% on the day to close at Rs 49.65 ahead of the announcements.

Shares in REpower jumped more than 8% on Monday.

Suzlon Energy, which earlier held about 91.7% of REpower, is the world's third-largest wind turbine maker behind Denmark's Vestas and Spain's Gamesa.

Last year, Suzlon said it was in talks to buy the remaining stake in the German firm and that the two brands would continue operating independently after a complete merger.

The so-called squeeze out process can take roughly one year in Germany, and the price will be proposed by a valuer appointed by Suzlon, and approved by a court, Suzlon said.

Once Suzlon has 100% of the shares, REpower would cease to be listed, Suzlon said.