Suzlon Group announced the sale of a block of wind assets for approximately $40 million (Rs 200 crore). The windfarms are located across India with a majority of the assets located in Tamil Nadu.
The transaction is scheduled to conclude by mid-May after completion of due diligence and requisite approvals, said an official statement from Suzlon, which is the world's fifth largest wind turbine maker.
Speaking on the development, Mr Kirti Vagadia, Chief Financial Officer, Suzlon Group, said: ‘We are divesting in certain non?core assets and are set to raise approximately $40 million as per our plan outlined in February this year. This is a modest but important step forward in our strategy to optimise our capital structure and meet our repayment obligations in this year.”
“In addition to divesting these non-core assets, we believe our consistently improving business performance and outlook, particularly our strong revenue visibility for FY13, puts us in strong position as we begin the new fiscal.”
FCCB Deadline
Market-men said that the deadline for FCCB redemptions was fast approaching. The company, however, refused to divulge the exact due amount.
Suzlon spokesperson said: “Suzlon Group's first tranche of FCCBs are not due until June. As a listed entity it would be inappropriate to discuss them in detail. However, given the company's improving performance, impressive order inflow, potential collection of funds from a specific customer, and the progress we are making with the sale of non-core assets, we continue to believe we will meet our obligations in full.'
Shares of the company were trading at Rs 25.20, down 1.75 per cent, on the BSE.