Suzlon, one of the world’s largest wind turbine makers, is selling 75 per cent in its China-based manufacturing subsidiary—Suzlon Energy Tianjin Ltd (SETL)—to Poly LongMa Energy (Dalian) Ltd for $28 million (Rs 175 crore), as per a stock market disclosure.
Suzlon said the first tranche of payment has been completed as per the terms of the agreement. It will continue to own 25 per cent share in the company and participate in its operations as a joint venture partner.
Poly LongMa Energy, a conglomerate focused on conventional and green energy investments, will lead marketing and sales operations in China.
Suzlon scrip closed at Rs 6.54 on Wednesday, up 1.71 per cent on the BSE in a strong Mumbai market.
“This is an important step forward for our future business in China. With this joint venture, we monetise an asset we have built up from 2006, and through our partner, Poly LongMa Energy, maintain our strong presence in the world’s largest market, which remains strategically important for us," said Tulsi Tanti, chairman, Suzlon Group.
Suzlon is looking to raise $400 million this fiscal year through sale of non-core assets as a part of plan to cut its Rs 14,600 crore debt pile.
(Edited by Joby Puthuparampil Johnson)