Suzlon Energy, one of the world's largest wind turbine makers, plans to sell 35% stake in subsidiary Hansen Transmissions, it said in its filing. Suzlon’s wholly-owned subsidiary AE Rotor Holding B.V, through which it holds stake in Hansen, has appointed Bank of America-Merrill Lynch and Morgan Stanley to manage the sale.
The share price of the firm was up by more than 8% to Rs 79.8 per share before coming down to Rs 75-76 levels.
“Suzlon has proactively undertaken strategic and financial initiatives to develop a sustainable capital structure," said Hansen in a filing today. The share prices of Hansen were down by over 16% as it opened trading on the London Stock Exchange. The company's shares were trading at 97 pence against yesterday's closing price of 116 pence with a market capitalisation of 650 million pounds. Suzlon has said that it will not sell any more shares in Hansen for next 180 days.
Suzlon has also started discussions with its bankers to implement a broad-based debt consolidation and refinancing scheme aggregating to $3.1 billion in value. The company promoters, Tulsi Tanti and his family, have also cut their stake in the firm to raise funds. The stake sale by Suzlon will not have any impact on the long-term supply arrangements between the two firms, Hansen added in its statement.
Earlier this year, Suzlon sold a 10% stake in Hansen to London-based investment firm Ecofin Ltd. Post that deal, Suzlon's stake in Hansen fell to 61.28%. In 2006, Suzlon had acquired Belgium-based Hansen, a leading wind turbine gearbox manufacturer, for $645 million (€465 million) in an all-cash deal.
Suzlon has been reeling under the pressure of debt and posted a net loss of Rs 356 crore for the quarter ending September '09. The company's net debt stood at Rs 12,525 crore at the end of this quarter.