By ad hoc announcement dated 1 September 2008 REpower Systems AG has announced that its majority shareholder Suzlon has requested the management board of REpower to enter into negotiations regarding the execution of a domination and profit transfer agreement between REpower and SE Drive Technik GmbH, a member of the Suzlon Group.
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REpower is in fairly advanced negotiations with a syndicate of banks regarding the financing of the company's further growth. The syndicate of banks makes it a condition precedent for the execution of the financing agreements that the parties refrain from entering into a domination and profit transfer agreement. Against this background and given the current financial market crisis, REpower and Suzlon have decided that they will no longer pursue the negotiations regarding a domination and profit transfer agreement if this growth financing is executed.
