Suzlon may exit Hansen fully

In a bid to ease a part of its Rs 12,000 crore debt burden, Pune-based Suzlon Energy plans to sell off its entire stake in Belgium-based component manufacturer Hansen Transmissions.

Suzlon acquired Hansen through its subsidiary AE-Rotor Holding for $465 million (over Rs 3,000 crore) in an all-cash deal, in March 2006.

In January this year, it sold 10% stake to London-based specialised investment firm Ecofin Ltd for Rs 600 crore, leaving it with 61% stake.

Media reports suggest the company is now talking to New York Stock Exchange listed United Technologies Corporation for selling a minority stake.

But analysts feel the company might go all the way and sell its entire stake in Hansen.
Sumant Sinha, chief operating officer, Suzlon Energy declined to comment. “These are serious issues and the company will not comment on them,” he said.

“Hansen being a component manufacturer, no company would like to purchase a minority stake and would prefer going for the complete company,” an analyst from an international brokerage said on the condition of anonymity.

The analyst said Suzlon is likely to sell its 61% stake in Hansen for $1.3 billion, thereby valuing the company at around $1.8 billion.

“The company realises that a deal for turbine manufacturer REpower has more strategic importance than Hansen,” the analyst said, adding, it had to raise a lot of debt to fund the REpower deal.

In a related development, Suzlon on Thursday held a meeting with the bondholders of its $200 million second tranche of foreign currency convertible bonds, which could not be restructured due to bondholder disapproval last month.

“The Proposed Amendments have been approved by the Meeting in accordance with the terms and conditions of the Consent Solicitation Memorandum,” it said in a notice to the Bombay Stock Exchange later. The company said it will pay an aggregate amount of incentive fee of $1,869,862.5 to holders of the bonds who consented to the proposed amendments and did not waive the right to receive incentive fees. “The total principal amount of the bonds outstanding as at the date hereof is $121,368,000.”