Suzlon Energy hives-off “LOSS-MAKING” solar assets(!) plugs it to Canadian Solar for 550 million (55 cr)

PUNE | MUMBAI | RAJKOT – Amidst the much ambitious Solar programme of India Government to give boost to renewable energy generation, a regulatory filing submitted to the Exchanges in India on Tuesday by Suzlon Energy Ltd surprised investors and equity fraternity.  The filing said of the company have hived-off its Solar assets, declaring sale of its two subsidiary companies for cash consideration of 545.3 million (54.53 crore) rupees to Canadian Solar.

This is to inform that in terms of Share Subscription and Shareholders’ Agreement executed by the Company with (a) Canadian Solar Energy Holding Singapore I Pte. Ltd. and Canadian Solar Energy Private Limited (together “Canadian Solar”) and Amun Solarfarms Limited (“Amun”) and (b) Canadian Solar and Avighna Solarfarms Limited (“Avighna”), the subsidiaries of the Company, the Company has completed sale of Amun and Avighna to Canadian Solar and accordingly Amun and Avighna have ceased to be the subsidiaries of the Company, the filing read.


SUBSIDIARIES & FINANCIALS

As first part of the transaction, Canadian Solar acquired 49% stake in Amun and Avighna respectively for a combined cash consideration of 264.2 million (26.42 crore) rupees, the filing said.

And as second part of the transaction, Canadian Solar acquired balance 51 % stake in Amun and Avighna respectively for a combined cash consideration of 281.1 million (28.11 crore) rupees, the filing read.


The turnover of Amun for the financial year ended 31st March 2018 was 70.3 million (7.30 crore) rupees and the net worth of Amun as on 31st March 2018 was negative 27.8 million (2.78 crore) rupees, the filing said.

The turnover of Avighna for the financial year ended 31st March 2018 was 65 million (6.50 crore) rupees and the net worth of Avighna as on 31st March 2018 was negative 30.4 million (3.04 crore) rupees, the filing read.

Further, Canadian Solar Energy Holdings Singapore I Pte Ltd and Canadian Solar Energy Pvt Ltd the said buyers do not belong to the promoter / promoter group / group companies, resulting the transaction would not fall within related party transactions.


Announcement from Suzlon Energy hit the exchange after the trading session for the day had come to halt on Tuesday.

Hence, it will be interesting to see how investors & traders react to the subsidiary sale activity of wind czar Tulsi Tanti and what sort of impact it makes on the share prices of the company, when the trading session re-opens for the day on Indian Bourses on Wednesday.


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