Indowind to acquire European wind energy company for $100 Mn

By SiliconIndia   |   Wednesday, 28 November 2007, 08:00 Hrs
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Mumbai: Chennai-based Indowind Energy is under talks for the acquisition of a wind energy company in Europe at an estimated price of around $100 million. The acquisition, if successful, will help the wind energy and farming company to expand its footprint both in domestic and global markets, reported Business Standard.

With this acquisition Indowind will be the second Indian wind power company to secure an overseas acquisition. Suzlon Energy has two high-profile acquisitions – Belgium's Hansen Transmissions International and Germany’s REpower - under its belt.

"The company is close to acquiring a power company in Europe, while it is also in discussions with a couple of companies in the region for purchasing of power technology. The acquisition is in the final stages and the company would soon announce the deal," a source close to the development told Business Standard.

The acquisition price for the wind energy company would hover around $100 million, while the Indian company would spend another $50 million on technology, he said. He, however, did not divulge the name of the company, citing competition.

The company had raised around $25 million from a recently concluded initial public offering (IPO) and another $100 million through a Foreign Currency Convertible Bonds (FCCB) issue. Indowind Energy has got commitments of $50 million from a clutch of bankers and intends to use part of these proceeds for the acquisition.

($1= Rs 40)

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