Senvion agrees to shed Indian subsidiary

German wind turbine maker Senvion SE (ETR:SEN) has agreed to offload its Indian manufacturing operations to an unnamed strategic investor, thus exiting the local market.

The troubled company said earlier this week it has signed a binding pact to transfer the ownership of Senvion India Pvt Ltd but did not provide financial details on the agreement. Senvion India was set up in 2016 and 85% of the turbines it supplies are produced domestically.

The move follows Senvion’s decision from last summer to spin off its Indian arm and run it as a standalone business unit but keeping it as a wholly-owned subsidiary. Earlier in 2019, the manufacturer’s main unit, Senvion GmbH, filed for self-administration proceedings as it was unable to agree on any financing options so as to secure the continuation of its operations.

Thorsten Bieg, partner at GORG who joined Senvion’s management board as a restructuring expert, stated that Senvion has signed legally binding agreements to transfer the relevant intellectual property and know-how to the Indian unit, once the deal closes.

The transaction is pending regulatory clearance and is expected to be completed before June.

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