Wind turbine manufacturer Suzlon Energy Ltd has completed the sale of its remaining 26.06 per cent stake in Belgium-based Hansen Transmissions International NV to German engineering firm ZF Friedrichshafen AG for Rs 890 crore or GBP 115.25 million. Hansen is a London Stock Exchange-listed wind turbine gearbox and industrial gearbox designer, manufacturer and supplier, which was acquired by Suzlon in 2006.
“Suzlon Energy Ltd now wishes to inform the BSE that in accordance with the terms of the Irrevocable Undertaking, Suzlon has tendered its shares under the offer. ZF declared the offer unconditional on October 6, 2011, and has acquired, under the offer, from AERH, 174,632,079 depository receipts in Hansen, for a sum of GBP 115,257,172.14. Suzlon has thus disposed of its entire stake in Hansen and has received sale proceeds of about Rs 890 crore,” the company said in a filing on Thursday.
While Suzlon has now completely exited Hansen, the company is also in the final stages of acquiring 100 per cent stake in the wind power firm REpower Systems SE. Last month, REpower’s board passed a resolution to ‘squeeze out’ its minority shareholders who hold the remaining 5 per cent in the German firm for €63 million or Rs 428 crore.
Suzlon shares were trading at Rs 37.80 per unit at 12:43 pm on Thursday, down 0.66 per cent on the BSE. Citicorp International Finance Corporation and IDFC Private Equity currently hold small stakes in Suzlon.
Suzlon had acquired stakes in Hansen and REpower during 2006-2008 but had to start a debt recast programme as its borrowings increased to $2.5 billion during mid-2009. Since then, the firm has been cutting its stake in Hansen while increasing its holding in REpower, in order to take the latter private.
Suzlon had acquired Hansen from private equity firms Allianz Capital Partners and Apax for $565 million in March 2006. It sold 10 per cent stake in Hansen to Ecofin at the start of 2009 for $100-120 million and followed it up with a sale of 35.2 per cent stake for $370 million through a placement by the end of the year. With the current leg of the transaction, Suzlon may stand to make around $100 million on the deal but that does not take into account the cost of the debt incurred.
