Suzlon up on Senvion LSE 'rumour'

Suzlon has rushed out a statement to the Mumbai Stock Exchange describing as “rumour and speculation” reports that it is poised to list its Senvion unit in London, after shares in the Indian wind group surged following their publication.

Suzlon shares closed almost 13% higher in India today after a report claimed the group would seek to raise 100bn rupees ($1.67bn) by part-listing Senvion, its Germany-based turbine manufacturing subsidiary until recently known as REpower.

There have been several suggestions over the last few years that Suzlon – which is battling to restructure its finances amid big debts – sees a Senvion sale or float as part of the solution to its problems.

But the wind group told the Mumbai exchange earlier today: “Suzlon is exploring various options to rebalance its capital structure, and accordingly we would relook at our capital structure during the next financial year (FY 2014-15).

“With reference to the media reports, it remains our policy to not to comment on what is market rumour and speculation.”

Suzlon also felt moved to clarify reports of a possible US acquisition.

It said this relates to the transaction to acquire the Big Sky wind project in Ilinois – as first reported in Recharge in February.

Suzlon added: “We wish to reiterate that the company and its management remain committed to the highest standards of corporate governance, and will communicate to the stock exchanges on developments as they happen."