Suzlon likely to sell stake in maintenance arm; eyes $250 mn

Suzlon Global Services Ltd, the operations and maintenance (O&M) subsidiary of Suzlon Energy Ltd, is looking to raise up to $ 250 million by divesting a large minority stake, two people aware of the plan said.

Suzlon Global is engaged in preliminary discussions with several large global private equity funds for the sale, but is yet to sign an exclusivity agreement on negotiations with anyone, the two people said on condition of anonymity.

“The main purpose of the fund raise is repayment of Suzlon Energy’s debt,” one of the two said.

Suzlon Energy is looking to sell as much as a 40% stake in Suzlon Global, said the second person.

Responding to a query from Mint, a Suzlon Energy spokesperson said, “We do not comment on market speculations.”

Suzlon Global was incorporated in 2004. The company currently provides O&M services for Suzlon Energy’s wind turbine generators (WTGs) in India. According to recent corporate filings, as of 31 March, 2017, the company had an installed WTG capacity base under maintenance of 11,297 MW.

Suzlon Global was merged with Suzlon Structures Ltd (SSL), a wholly owned subsidiary of Suzlon Energy, effective 1 April, 2016, through a high court order. The tubular tower business of SSL was de-merged and transferred to Suzlon Energy.

Suzlon Energy, promoted by Tulsi Tanti, is a fully integrated wind power solutions provider.

MUMBAI: