Suzlon Energy gains on sale of China unit

BT Online Bureau   New Delhi     Last Updated: June 25, 2012  | 16:22 IST

Suzlon Energy shares ended higher on Monday after the wind energy firm said that it has sold its Chinese manufacturing subsidiary to China Power (Tianjin) New Energy Development Company for Rs 340 crore.

Suzlon's shares ended 2.3 per cent higher at 17.75. The broader markets however ended lower with the Sensex ending 90 points lower.

Suzlon Energy said that the sale is subject to requisite regulatory approvals.

"The dynamics of the wind energy market have changed considerably over the past year, and we are re-aligning our strategy in the Chinese market with an agile, asset-light business model to achieve high growth and margins but with lower investments. "We have decided to realign our business there, as reflected in this transaction," Suzlon Group chairman Tulsi Tanti said in a statement.

The world's fifth largest wind power maker by installed capacity, Suzlon has over Rs 10,000 crore in debt, out of which around Rs 6,000 crore in working capital loan and Rs 4,000 crore in long-term debt.  (With PTI inputs)

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