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Brookfield mulls majority stake in debt-ridden Suzlon: Report

The firm is consulting with a financial advisor to evaluate the deal which would include acquiring stake by buying new shares and putting up open offers for existing shareholders

July 11, 2019 / 05:56 PM IST
 
 
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Canadian investment firm Brookfield Asset Management Inc. might make an offer to acquire a majority stake in Pune-based wind turbine supplier Suzlon Energy, as per a Bloomberg report.

Brookfield is in talks with Suzlon's creditors to discuss possible debt restructuring for the manufacturer's $1.6 billion worth of pending banks loans under a one-time one-time settlement plan.

As per the report, the firm is consulting with a financial advisor to evaluate the deal which would include acquiring stake by buying new shares and putting up open offers for existing shareholders.

The investment firm has further asked the lenders led by the State Bank of India, to take a haircut of at least 50 percent on the loans. A formal offer is expected by July-end, the report stated.

The deal is could be especially vital for Suzlon's lenders given that CARE Ratings downgraded the manufacturer's long-term bank facilities from BB to D in April 2019.

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