Germany-based one of the world’s leading wind turbine makers Senvion GmbH is selling its fully operational wind turbine manufacturing entity in India to an undisclosed investor.
The company, which is a specialist in the offshore business, has entered into a binding agreement with a strategic investor to sell and transfer full ownership of Senvion India.
However, the company didn’t disclose the name of the investor but hinted that it is a world-wide industrial conglomerate with strong EPC capabilities.
As per the binding agreement, the company will transfer all of its assets like factory, personnel, installed base and currently ongoing project including complete knowhow and I/P relevant for the India market, to support ‘Make in India’ strategy.
Speaking on the development, Dr. Thorsten Bieg, Partner at GÖRG who joined the Management Board of Senvion GmbH as a restructuring expert, said that “this is a positive outcome for our Indian entity to find a safe harbour and continue to serve one of the largest renewable energy markets. We have started working towards an earliest closure and transfer of the Indian business to the new shareholders.”
The move is further to the company’s announcement last year, where Senvion India was made an independent entity to manufacture, supply and operate Senvion turbines.
“As announced earlier Senvion India is a fully independent entity of Senvion GmbH. Now, we have also signed legally binding agreements to transfer the relevant Intellectual Property and knowhow to Senvion India, which will be effective upon the closure,” Dr. Bieg added.
Now, both the parties have entered into the final closure stage where legal documentation and agreements are being discussed.
“Today’s announcement is a significant milestone for Senvion India, as we have now found a strategic investor who is interested to continue serving the large Indian renewable market,” commented Amit Kansal, CEO & MD of Senvion India.
He further added that “Senvion India makes 85 percent of its turbines in India and has created over 1,000 jobs directly and indirectly. We will continue to provide world-class wind energy solution to projects in India. Looking ahead to the weeks to come, the management team will continue to put all efforts in concluding the transaction at the earliest. Senvion India continues to service its installed base and deliver its project while we close this transaction.”
Meanwhile, it is expected that the transaction will be closed before June 2020, subject to any regulatory approvals.