India-based wind equipment manufacturer Suzlon Energy has received approval from its shareholders for the sale of its German subsidiary Senvion to US-based venture capital firm Centrebridge Partners.
The board of directors has also authorised the firm to issue up to Rs1bn ($16m) equity shares on a preferential basis.
The approval was granted to enable Suzlon Energy for making investments, offering loans, guarantees, and to provide securities beyond the prescribed limits.
Currently, the firm is presently under a corporate debt restructuring scheme for financial revival. It has received mandatory approvals from the Corporate Debt Restructuring Empowered Group (CDREG) as well for the divestment.
Suzlon had earlier announced about the possible divestment to be done for a minor loss, in order to bring down its debt, reports Business World.
In 2007, the German unit was acquired by the Indian company for Rs73bn ($1.17bn).
Suzlon group chairman Tulsi R Tanti said: "We will capitalise on our technological prowess, sustained market leadership of 18 years and best-in-class services to tap the immense growth opportunities in our home market, USA and other emerging economies."
Image: Suzlon gets board approval for sale of Senvion. Photo: courtesy of Suzlon Group