Tanti Group’s Honiton buy in China no significant impact on Suzlon Energy

The Tanti Group, promoters of Suzlon Energy have bought Honiton Energy Holdings plc (Honiton) which develops and operates wind farms in China with an installed capacity of 50MW. The deal is routed through Singapore-based holding company (Colossus Holding), in JV partnership with Arcapita Bank, Bahrain.

Honiton’s acquisition is not routed via Suzlon’s books of account. Honiton’s 50 MW wind farm is composed of 40 units of Suzlon’s 1.25MW turbine Honiton also owns 16.65% interest in REpower North (China) Ltd., a JV with REpower Systems AG (50.01% stake) and North Heavy Industrial Corp (33.34% stake) licensed to manufacture & supply 2MW wind turbines to wind developers in North China, including Honiton.

Tanti Group’s ownership in Honiton (which plans to ramp up capacity to 1650MW by 2012) could potentially provide captive orderbook for Suzlon in future.