Suzlon Energy Ltd, Asia's third biggest wind turbine maker by sales, is studying options for its German Repower Systems SE subsidiary, including a sale or listing a stake.

People with knowledge of the matter said that Pune based Suzlon is seeking at least EUR 1.5 billion (USD 1.96 billion) from a sale, while a listing of Repower's international operations or Repower itself are among options that have been considered, said the people, who declined to be identified as the discussions are private. A sale may be preferred to an IPO for now.

Wind turbine makers face narrowing margins after reducing prices to compete for orders as US and European governments cut clean energy incentives to curb budget deficits.

Suzlon is struggling to meet debt repayments, and losses at the company grew to 286 crore (USD 56 million) in the three months through December, the most in five quarters. That prompted the company's auditors to examine its ability to raise funds to make debt repayments due this year.

No firm decision on any sale has been made, as deliberations are at an early stage, the people said. Repower may return to the stock exchange in May or June, Manager Magazine reported on March 21.

Spokesmen for Suzlon and Repower in Hamburg declined to comment.

Suzlon has held initial talks with potential buyers including Alstom SA, General Electric Co and Siemens AG, the Wall Street Journal said on March 15. Siemens won't buy Repower, Siemens board member Michael Suess told the Journal on March 20.

Source - Economic Times

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