Suzlon Wind Energy, a subsidiary of Denmark-based Suzlon Energy A/S, has increased its share offering to 150 euros per share for the acquisition of REpower Systems, a Germany-based wind turbine manufacturer. The price now exceeds AREVA Group SA's most recent offer by 10 euros per share.
In late January, AREVA, which owns nearly 30% of REpower's shares, announced its intention to publish a cash tender offer of 105 euros per share for the shares it does not own. Suzlon followed AREVA's bid with a friendly tender offer of 126 euros per share with the support of Portugal-based power provider Martifer, owner of just over one quarter of REpower's shares. REpower's supervisory and management boards approved Suzlon's 126-euros-per-share bid on March 5 and recommended accepting the offer. Ten days later, AREVA increased its offer to 140 euros per share, which REpower's boards approved.
‘Our offer price of 150 euros per share is very attractive for all shareholders,’ comments Tulsi Tanti, Suzlon's chair and managing director. ‘The decision to increase the offer was taken after careful analysis and review of potential business and control over component-level technology and its integration with turbine technology.’
According to Suzlon, its most recent bid will expire on April 20.