Shares in Suzlon were up over 10% on Monday after media reports in India that investor Brookfield is keen on acquiring a majority stake in the turbine manufacturer.
The Economic Times reported that the India-based company has told its lenders of the Canadian company’s interest.
The story, which quotes sources involved in the process, claims a deal is part of a settlement proposal to lenders that includes a waiver of some of the Suzlon’s debts.
Brookfield has carried out “extensive” due diligence of Suzlon’s operations and maintenance division, added the report.
A deal could be closed within six months, the Economic Times added.
Last month, Suzlon reported debt of Rs11bn for the end of its fiscal year 2019 with a total loss for the 12 months of Rs1,537 crores (€195m).
Suzlon said at the time it is exploring “various funding options” including a fresh raising of equity and disposal of subsidiaries, according to a filing to the Mumbai Stock Exchange.
“The company has been engaging with various experts, consultants and advisors in this regard,” stated the filing.
Danish turbine manufacturer Vestas has also been linked with an acquisition of shares in the company in recent months.
Spokespeople for Brookfield and Suzlon did not immediately respond to requests for comment.