Suzlon confident of outbidding Areva to acquire REpower

Asked whether Suzlon would increase its offer price if Areva raises its bar from Euro 105 a share, Tanti said, “We should not speculate at the moment. But we are confident of winning the deal and bag shareholders’ approval. If the question of raising the offer comes, we will do it accordingly.”

Suzlon had earlier placed an all-cash offer of Euro 126 per REpower share along with Portugal-based Martifier, which has a 25.4 per cent stake in REpower. At Euro 126 per share, Suzlon’s offer exceeds Areva’s offer by 20 per cent.

Suzlon intends to foot the bill, totalling $1.3 billion, from internal accruals and debt, which is already fully tied-up, Tanti said.

Tanti said that he hopes there is room for high degree of synergy between the two companies and any shareholder who intends REpower to move up on the curve should not stop us from acquiring the company.

“Our participation in the company will add genuine value to REpower. We will make it stronger at the medium and long term,” he said.

“Our offer is very attractive and we obviously do expect a healthy response at this level,” Tanti added.

Asked whether Martifer, the company with which Suzlon has inked a joint venture agreement and set up a special purpose vehicle for the acquisition, would stay put in the post-acquisition period, Tanti said both the companies are empowered with call and put options and they can exercise it at any given time.

Suzlon Energy owns 75 per cent in the SPV, Suzlon Windenergie GMBH. As per the agreement with Mertifer, Suzlon would finance the offer and the latter would support it.