Suzlon Energy to sell 10% stake in Hansen

January 2nd, 2009 • Related • Filed Under

Suzlon Energy Ltd, the country’s biggest maker of wind turbine generators, said it agreed to sell a 10% stake in unitHansen Transmissions International NV to London-based investment firmEcofin Ltd.

Ecofin will have a voting and equity interest in Hansen, a Belgian maker of wind turbine gearboxes, of about 11.62%, Suzlon said in an emailed statement on Friday, without stating a value for the sale. Suzlon will retain about 61.28% in Hansen, according to the statement.
The stake sale will help Suzlon raise funds after the company suspended a $373 million (Rs1,824 crore) rights offer to finance the purchase of additional shares in Hamburg-based REpower Systems AG. Suzlon’s stock declined 84% last year after customers complained about faulty equipment.
“Considering the environment, this is a good step,” said Lokesh Garg, an analyst with Kotak Securities Ltd, who recommends a buy on Suzlon. “The company isn’t as trapped for funds as it appeared to be.”
Suzlon shares gained 2.64% to Rs64.55 at close in Mumbai trading.
Ecofin agreed not to sell the stake acquired from the Ahmedabad-based company until 30 June and can nominate one non-executive director to the Hansen board, Suzlon said.
A 10% stake in London-listed Hansen is valued at £78 million (nearly Rs559 crore), based on its closing share price on 31 December. Hansen’s stock has declined 33% since the company’s initial share sale in December 2007. Suzlon acquired the Belgian gearbox maker in March 2006 for €465 million (Rs3,153 crore today).
Hansen raised £289 million in the initial public offering and planned to use the proceeds to expand capacity through new factories in India and China, Hansen had said at that time.
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