Suzlon Energy To Buy Stake Worth Rs 660 Crore In Renom Energy Services

The board of directors of Suzlon Energy Ltd. on Tuesday approved the acquisition of a 76% stake in Renom Energy Services Pvt. The acquisition is subject to the fulfilment of certain set conditions.

The company will acquire 22.80 lakh shares worth Rs 660 crore on a fully diluted basis, the wind turbine manufacturer said in an exchange filing. The acquisition of shares will take place in multiple tranches, it added.

While the company will acquire a 51% stake in Rs 400 crore in about three months on fulfilment of closing conditions under the SPA, the additional 25% stake will be acquired within 18 months of the first stake purchase. Suzlon Energy has the option to acquire a 25% stake worth Rs 260 crore either through cash or a share swap.

The acquisition will give the company a comprehensive presence and penetration into the non-Suzlon segment of the Indian wind energy services industry.

Renom Energy Services is a multi-brand operations and maintenance service provider, with approximately 2.5 GW of assets under maintenance—consisting of 1,782 MW in wind, 148 MW in solar and 572 MW in balance of plant across customer segments.

Shares of the company closed 2.33% lower at Rs 66.27 apiece on the NSE, as compared with a 0.26% gain in the benchmark Nifty 50.