Report: Suzlon resumes bid for REpower shares

India's Suzlon Energy (BOM: 532667) is reportedly selling 5 percent to 8 percent of its shares to finance an expansion that includes acquiring an additional 22.48 percent of Germany's REpower Systems (BER: RPW.BE).

Shares in REpower were up more than 28 percent in afternoon trading. Suzlon shares were up more than 3 percent.

India's Business Standard said that Suzlon is in talks with international private equity firms Goldman Sachs, General Atlantic and Blackstone for the sale, which represents a valuation between Rs 800 crore and Rs 1,000 crore ($177 million to $220 million USD).

Suzlon is the fourth-largest maker of wind turbines in the world.

Suzlon currently holds 66 percent stake in the Hamburg-based REpower, which it acquired about two years ago for Rs 7,314 crore. 

Last week, Suzlon said it was cancelling a €270 million ($360 million) rights issue for the additional 22.48 percent stake in REpower because of market concerns. Suzlon announced plans in September to buy the shares from Portugal's Martifer (LIS: MAR.LS) by Dec. 15 (see Windy dealmaking leads the week).

Martifer officials said today the sale was still on track.

Meanwhile, Suzlon said it's dropping plans to build a new, Rs 700 crore manufacturing facility for towers.

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