Suzlon Energy, India’s largest wind-turbine manufacturer, plans to sell a 10% stake in its Belgian gearbox manufacturer arm, to London-based specialised investment firm Ecofin Ltd.
Suzlon Energy, India’s largest wind-turbine manufacturer, plans to sell a 10% stake in its Belgian gearbox manufacturer arm, Hansen Transmissions International NV, to London-based specialised investment firm Ecofin Ltd.
Suzlon announced on Friday that the deal was final, but was tight-lipped on the value. But sources said the deal size was close to Rs 600 crore and the proceeds will be used to part-fund the remaining two tranches of Suzlon’s deal with Martifer.
Ecofin will have a voting and equity interest in Hansen of about 11.62% while Suzlon will retain a share of about 61.28% in Hansen.
Suzlon has recently postponed its Rs 1,800 crore rights issue citing choppy market conditions, despite getting a green signal from the Cabinet Committee on Economic Affairs.
The Indian wind turbine firm plans to acquire the 22.4% stake Portugal-based Martifer holds in REpower and raise its stake to 91% in the acquired company.
The value of the deal with Martifer is pegged at Rs 1,800 crore.
The Hansen stake would be sold by Suzlon’s Netherlands-based wholly owned subsidiary AE-Rotor Holding BV.
Last month, Suzlon Energy and Martifer Group agreed on a revised payment schedule, under which Suzlon would pay around 65 million euros in December 2008, 30 million euros in April, 2009, and a final tranche of 175 million euros in May 2009.
On December 30, Suzlon Energy announced the acquisition of the first tranche of Martifer Group’s stake in REpower.
With the dilution of Hansen stake, Suzlon will have substantial funds to partly-fund the two tranches, which approximately add up to Rs 1,400 crore.
Suzlon Energy, through AE-Rotor Holding, acquired Hansen Transmissions in March 2006 for $465 million (over Rs 3,000 crore) in an all-cash transaction.
A Suzlon spokesperson said under the terms of the agreement, Ecofin has been granted the right to nominate one non-executive director for so long as Ecofin’s shareholding in Hansen is a minimum of 8%.
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