On the heels of selling Senvion, turbine maker Suzlon continues to make moves to shore up its financial health.
Dilip Shanghvi Family and Associates has purchased a 23% stake in Suzlon Energy Ltd. Tulsi Tanti, chairman of Suzlon Group, owns 24% and retains control over the company.
Shangvhi, the founder of Sun Pharmaceutical Industries and reported by Bloomberg as India's second-richest man, has invested about $290 million in the company.
The deal provides the financialy-troubled Suzlon with much-needed liquidity, and the company says it will also use the cash to tap opportunities in India and growth markets such as the U.S., China, Brazil, South Africa, Turkey and Mexico. Additionally, Shangvi and Suzlon have agreed to a joint-venture partnership that includes development of wind farms totaling 450 MW.
‘All the strategic initiatives are extremely crucial and will pave the way for our growth’ explains Tanti. ‘These bold steps will strengthen our capital structure permanently, enabling significant deleveraging and liquidity to ramp up volumes rapidly.’
The investment comes less than a month after Suzlon sold turbine unit Senvion to Centerbridge Partners in a $1.2 billion all-cash deal.