CNBC-TV18 reported<\/a>\u00a0on 22 February, citing unnamed sources with knowledge of the negotiations, that talks between the two companies were underway.<\/p>\n“We gather from sources with direct knowledge that Vestas is interested in buying a controlling stake in Suzlon, and then launch an open offer for the shares,” said CNBC anchor Nisha Poddar.<\/p>\n
Following the reports, a Vestas spokesman released a statement: “Vestas\u2019 strategy is based on organic growth and, as we have said before on similar speculation, our industry-leading position means we are open to additional bolt-on opportunities to accelerate our growth strategy should such arise.<\/p>\n
“Vestas will give no further comments at this point, but will of course comply with applicable laws and regulations, including the release of company announcements if or when required.”<\/p>\n
Suzlon share price increased 50% to INR 5.61 ($0.0789)\u00a0following the rumours, but refused to comment on the CNBC-TV18 report.<\/p>\n
Jacob Pedersen, stock analysis manager at Sydbank, said he would be “somewhat surprised” if Vestas would go ahead with the deal, given Suzlon\u2019s ongoing “deep financial distress”.<\/p>\n
“I can see the attraction to get a strong foothold in the Indian market, but all that comes with a cost. It could be a drag on Vestas for some time,” Pedersen said.<\/p>\n
Suzlon reported its nine-month financial figures in early February, with a 31% fall in gross profit year-on-year.<\/p>\n
Ebitda also fell 68% to INR 2.65 billion ($37 million) across the nine-months to the end of December. Suzlon blamed a “lower operating leverage” on the fall.<\/p>\n
The firm has been battling high levels of debt of several years, which, in part, led to the sale of Senvion to Centerbridge Partners in 2015.<\/p>\n
However, the firm reported a 2.1GW turbine order backlog and ambitiously predicted India could rebound to an 11GW market beyond 2021. The country installed a little over 2GW in 2018.<\/p>\n
Pedersen added while the high levels of debt at Suzlon could allow a good deal for Vestas, there would be additional restructuring and alignment costs.<\/p>\n
https:\/\/www.windpowermonthly.com\/article\/1562618\/vestas-open-opportunities-amid-suzlon-speculation<\/a><\/p>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"
[et_pb_section admin_label=”section”][et_pb_row admin_label=”row”][et_pb_column type=”4_4″][et_pb_text admin_label=”Text” background_layout=”light” text_orientation=”justified” use_border_color=”off” border_color=”#ffffff” border_style=”solid”] Danish manufacturer Vestas said it would be “open to additional bolt-on opportunities to accelerate our growth strategy”, following reports in the Indian media it is in negotiations to acquire a controlling stake in wind turbine supplier Suzlon. Indian business news channel\u00a0CNBC-TV18 reported\u00a0on 22 February, citing […]<\/p>\n","protected":false},"author":1,"featured_media":667,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/ege-windturbines.com\/en\/wp-json\/wp\/v2\/posts\/666"}],"collection":[{"href":"https:\/\/ege-windturbines.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ege-windturbines.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ege-windturbines.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ege-windturbines.com\/en\/wp-json\/wp\/v2\/comments?post=666"}],"version-history":[{"count":1,"href":"https:\/\/ege-windturbines.com\/en\/wp-json\/wp\/v2\/posts\/666\/revisions"}],"predecessor-version":[{"id":668,"href":"https:\/\/ege-windturbines.com\/en\/wp-json\/wp\/v2\/posts\/666\/revisions\/668"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ege-windturbines.com\/en\/wp-json\/wp\/v2\/media\/667"}],"wp:attachment":[{"href":"https:\/\/ege-windturbines.com\/en\/wp-json\/wp\/v2\/media?parent=666"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ege-windturbines.com\/en\/wp-json\/wp\/v2\/categories?post=666"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ege-windturbines.com\/en\/wp-json\/wp\/v2\/tags?post=666"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}