Shares in turbine manufacturer Suzlon rose by over 25% today as market speculation mounted that rival Vestas is preparing an offer to buy a controlling stake.
The India-based company’s stock price opened at INR4.60 on Friday and was as high as almost INR6.0 during late afternoon trading.
The bounce follows a report by CNBC-TV18 that Suzlon and Vestas are in talks that are at a “serious stage” with valuations being negotiated.
Vestas is eyeing up to 40% of the company’s shares, the media outlet reported.
CNBC-TV18 said Suzlon’s lenders will play a “critical role” in the deal given debt reduction is one of the agreement’s chief reasons.
A spokesman for Vestas said the company is “open to additional bolt-on opportunities to accelerate our growth strategy” should opportunities arise.
“Vestas will give no further comments at this point, but will of course comply with applicable laws and regulations, including the release of company announcements if or when required,” a spokesman added.
A spokesman for Suzlon said the company does not comment on “market speculation”.