The world's fifth largest wind turbine maker, Suzlon Energy, has agreed to sell about 10% of its equity stake in gearbox designer Hansen Transmissions to Ecofin, a London-based investment firm which specializes in the utility and infrastructure sectors. Suzlon says the sale is part of its strategy to finance future growth plans. Suzlon has taken the step in view of the tight liquidity situation and its obligation to buy the stake of Portuguese company Martifer in REpower, Germany.
Suzlon is the largest shareholder of Hansen and part of the advisory board. After the stake sale, Suzlon will retain a voting right and economic interest of about 61 percent in Hansen. The company has not disclosed the value of the transaction but it is believed to be in the neighborhood of 77 million euros.
"It's an asset sale that the company is doing and this is in line with the plan to raise funds," said sources close to the company. Suzlon has been targeting to raise funds that would part finance its move to raise its stake in Repower. The Tulsi Tanti-controlled company had earlier postponed a Rs 1,800-crore rights issue in October due to bad equity markets.
Suzlon's transaction to sell the stake would reduce its shareholding in Hansen to about 61.28%, while Ecofin will have voting and economic interest in Hansen of about 11.62%. Suzlon has also granted Ecofin the right to nominate one director on the board of Hansen.
Suzlon has acquired the Belgium-based manufacturer of gears for wind turbines in May 2006 for about Rs 2,500 crore (€465 million). It floated Hansen on the London Stock Exchange in December 2007 and raised about €400 million.
The transaction is also subject to conditions, Suzlon's statement said. Ecofin has undertaken to Suzlon that it won't dispose shares acquired from Suzlon until after June 30, 2009. The lock-up is renounceable only in certain circumstances, the statement added. Ecofin will get 67,010,421 shares representing 10 per cent equity interest in Hansen through AE-Rotor Holding, a wholly-owned indirect subsidiary of Suzlon, which is currently holding the shares. Ecofin already holds 1.62 per cent of Hansen shares.
Suzlon Energy has been trying to increase its shareholding in REpower to more than 90% that would allow it to transfer the wind energy technology to India, for use in forthcoming projects. Suzlon currently accounts for about 10.5% of the global market share of the wind turbine market.
Last month, Suzlon bought the first tranche of Protugal major Martifer group's stake in REpower Systems for Euro 65 million that has taken Suzlon's holding in REpower to 73.71%.
Suzlon had earlier agreed with Marifer on a revised payment schedule to buy Martifier's 22.4% stake in REpower. The company was to acquire Martifier's stake via three tranches and by paying Euro 65 million in December 2008, Euro 30 million in April 2009 and finally Euro 175 million in May 2009. By the end of three tranches, Suzlon's ownership level in REpower would go up to about 91%
Source: http://economictimes.indiatimes.com/News/News_By_Industry/Energy/Power/Suzlon_Energy_sells_10_Hansen_stake_to_Ecofin/rssarticleshow/3926826.cms Date: 02-01-9
Suzlon is the largest shareholder of Hansen and part of the advisory board. After the stake sale, Suzlon will retain a voting right and economic interest of about 61 percent in Hansen. The company has not disclosed the value of the transaction but it is believed to be in the neighborhood of 77 million euros.
"It's an asset sale that the company is doing and this is in line with the plan to raise funds," said sources close to the company. Suzlon has been targeting to raise funds that would part finance its move to raise its stake in Repower. The Tulsi Tanti-controlled company had earlier postponed a Rs 1,800-crore rights issue in October due to bad equity markets.
Suzlon's transaction to sell the stake would reduce its shareholding in Hansen to about 61.28%, while Ecofin will have voting and economic interest in Hansen of about 11.62%. Suzlon has also granted Ecofin the right to nominate one director on the board of Hansen.
Suzlon has acquired the Belgium-based manufacturer of gears for wind turbines in May 2006 for about Rs 2,500 crore (€465 million). It floated Hansen on the London Stock Exchange in December 2007 and raised about €400 million.
The transaction is also subject to conditions, Suzlon's statement said. Ecofin has undertaken to Suzlon that it won't dispose shares acquired from Suzlon until after June 30, 2009. The lock-up is renounceable only in certain circumstances, the statement added. Ecofin will get 67,010,421 shares representing 10 per cent equity interest in Hansen through AE-Rotor Holding, a wholly-owned indirect subsidiary of Suzlon, which is currently holding the shares. Ecofin already holds 1.62 per cent of Hansen shares.
Suzlon Energy has been trying to increase its shareholding in REpower to more than 90% that would allow it to transfer the wind energy technology to India, for use in forthcoming projects. Suzlon currently accounts for about 10.5% of the global market share of the wind turbine market.
Last month, Suzlon bought the first tranche of Protugal major Martifer group's stake in REpower Systems for Euro 65 million that has taken Suzlon's holding in REpower to 73.71%.
Suzlon had earlier agreed with Marifer on a revised payment schedule to buy Martifier's 22.4% stake in REpower. The company was to acquire Martifier's stake via three tranches and by paying Euro 65 million in December 2008, Euro 30 million in April 2009 and finally Euro 175 million in May 2009. By the end of three tranches, Suzlon's ownership level in REpower would go up to about 91%
Source: http://economictimes.indiatimes.com/News/News_By_Industry/Energy/Power/Suzlon_Energy_sells_10_Hansen_stake_to_Ecofin/rssarticleshow/3926826.cms Date: 02-01-9
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