Mumbai, July 25: Wind turbine maker Suzlon Energy is selling its remaining 26 per cent stake in Belgium-based Hansen Transmissions International NV for $187 million (Rs 840 crore). The stake will be acquired by the German company — ZF Friedrichshafen AG.
Though the company was silent on how it intends to use the proceeds from the sale, Tulsi Tanti, founder chairman and managing director of the Suzlon group, said the sale was in line with its strategy to optimise and strengthen the balance sheet.
Observers said Suzlon might use the proceeds to bring down its high debt levels.
As of March 31, 2011, Suzlon Energy had a net debt of over Rs 10,000 crore.
Suzlon shares today rose over 3 per cent to Rs 54.50 on the Bombay Stock Exchange after the market learnt about the deal.
Suzlon had acquired Hansen’s entire shareholding in March 2006 for over $650 million. Its holding came down to 71 per cent after Hansen sold new shares. Later, London-based investment company Ecofin acquired 10 per cent in Hansen. Subsequently, Suzlon sold over 35 per cent stake in Hansen bringing down its stake to 26.06 per cent.
ZF Friedrichshafen AG and Hansen Transmissions said they had reached a pact on the terms of a cash offer that would be made by ZF International, a wholly owned subsidiary of ZF, for the entire issued and to be issued share capital of Hansen at 66 pence per ordinary share.
In line with this announcement, Suzlon said AE-Rotor Holding BV, its indirect wholly owned subsidiary in the Netherlands, has entered into an irrevocable undertaking in favour of ZF under which it has undertaken to accept the proposed offer subject to certain terms and conditions.
No comments:
Post a Comment