Areva and Suzlon reach agreement on Repower
In order to end the bidding war for German wind turbine manufacturer Repower, Areva and Suzlon Windenergie have signed a binding agreement governing a framework regarding their respective shareholdings in the company.
With the agreement, Areva has said it will not raise its bid for Repower, which leaves the door open for India's Suzlon to acquire Repower in a deal worth some Eur1.35 billion ($1.82 billion).
Under the agreement, Areva of France will maintain its 30% stake in Repower and will continue to support the company. Areva will also become the preferred supplier of Suzlon in the field of electricity transmission and distribution. Areva has transferred its voting rights to Suzlon while retaining ownership of the shares. After a one-year freeze, Areva would be able to sell the shares to Suzlon at any time.
Suzlon, which currently holds a 7.7% stake in Repower, also has an agreement with Portuguese steel company Martifer, which has a 23% stake in Repower. Under its agreement, Martifer can sell its stake to Suzlon after two years.
As a result of its agreements with Areva and Martifer, Suzlon now effectively has control of the German firm with a stake of more than 60%.
Areva offered Eur105 per share of Repower in January 2007. On 28 February a counteroffer of Eur126 per share came from Suzlon Windenergie, a joint venture between Suzlon and Martifer. In March, Areva then increased its offer to Eur140 per share. Suzlon then submitted a bid worth Eur150 per share.
Further information
WNN: Areva raises bid for Repower
WNN: Areva overpowered for Repower
WNN: Areva buys wind technology company
