Suzlon sells its entire stake in Hansen for $187 million
26 July 2011
Suzlon Energy Ltd, India's largest wind-turbine maker, on Monday announced it has signed an "irrevocable undertaking" to sell the 26.06 per cent equity interest it holds in Hansen Transmission to ZF Friedrichshafen AG for about $187 million (Rs831 crore).
Suzlon's Netherlands-based subsidiary, AE-Rotor Holding BV, accepted an offer by ZF and will sell its entire 26.06 per cent stake in Hansen, which makes gears for wind turbines, the Indian company said.
The offer price is at a 96 per cent premium to Hansen Transmissions' closing price on the London Stock Exchange on Friday.
"This is in line with our strategy to optimise and strengthen our balance sheet," Suzlon chairman and managing director Tulsi Tanti said in a statement. Suzlon has been trying to lighten its debt burden of late.
ZF, a German manufacturer of auto-parts and agricultural machinery, will acquire Hansen for $725.5 million (Rs3,216 crore) in cash, or 66 pence a share, according to an undertaking signed with Hansen's two largest shareholders, Suzlon Energy and London-based investment company Ecofin Ltd, the German company said.
The board of Hansen have agreed to the offer, terming it as "fair and reasonable", and have unanimously forwarded it to Hansen shareholders for acceptance.
Suzlon had raised £224 million in November 2009 by selling a 35 per cent stake in Hansen. It had acquired Hansen in March 2006 for $565 million.
The net debt in Suzlon Energy books is Rs10,210 crore, and it holds Rs1,023 crore in cash. On a consolidated basis, it has a net debt of Rs9,142 crore and cash of about Rs3,131 crore.