Suzlon completes Senvion sale; raises Rs 7000 crore
The company said that it will now focus on the home market and high growth markets like the US and emerging markets like China, Brazil and South Africa, Turkey and Mexico.
Suzlon Group has said that the company has completed sale of its European subsidiary Senvion. Centerbridge Parnters has bought the company from Suzlon for a total 1 billion euros (Rs 7,000 crore).
On January 22, 2015, Suzlon and Centerbridge entered into a binding agreement to sell 100% stake in the company. Suzlon said, "The completion of the sale transaction has enabled Suzlon to raise approx. Rs. 7000 crore in cash, of which a substantial portion is intended to be utilized towards debt reduction and volume growth."
Suzlon has been reeling under a massive debt burden and has adopted a strategy to offload nono-core businesses and assets to reduce its debt.
The company said that it will now focus on the home market and high growth markets like the US and emerging markets like China, Brazil and South Africa, Turkey and Mexico.
Tulsi Tanti, Chairman, Suzlon Group said, “By this step we have demonstrated our strong commitment to our lenders who have been hugely supportive to us. The successful completion of the transaction of Senvion sale, paves the way for the group to ramp up volumes rapidly. We are now in a strong liquidity position to tap the opportunity available in India, other emerging markets and USA.”