Danish wind turbine manufacturer Vestas Wind Systems A/S is holding discussions to buy a controlling stake in Indian peer Suzlon Energy Ltd.
Vestas is negotiating a deal that will involve buying the 17.6 per cent stake in Suzlon held by promoter Tulsi Tanti and his family, as well as the 23 per cent interest held by investor Dilip Shanghvi.
Once it buys those stakes, the Danish firm plans to kick off an open offer for further shares. Talks are at a serious stage, according to an Indian media report.
The reason why Suzlon's investors are considering such a transaction is the fact that the company has piled up over $984 million (Rs 70 billion) of debt. Suzlon responded to a request for clarification from the Bombay Stock Exchange by saying that it is exploring multiple options for debt reduction along with its lenders.