Tulsi Tanti-led wind turbine-maker Suzlon Energy has increased stake in its subsidiary REpower to over 95%, a move that could see the Indian company buy out the remaining shareholders in the German firm.
As on date, Suzlon's subsidiary AE-Rotor Holding BV directly and indirectly holds a 95.16% stake in REpower, Suzlon informed the Bombay Stock Exchange today.
As per recent reports, the Suzlon stake in the company stood at around 91%.
"Under German Stock Corporation Act, a shareholding of 95% in a German stock corporation enables the majority shareholder to initiate squeeze-out proceedings in respect of minority shareholders," Suzlon said.
A notice has been provided to the management board of REpower "requesting the conduct of a squeeze-out procedure," the release said, adding carrying out the procedure will result in REpower becoming a wholly-owned subsidiary (of Suzlon).
The Pune-based Suzlon first acquired stake in REpower, which also produces turbines, in FY 08 and subsequently bought more shares in the company.
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