Suzlon To Sell Its 26% Stake In Hansen For $187 Mn

Suzlon Energy Ltd is selling its remaining 26.06% stake in Belgium-based Hansen Transmissions International N.V. to Germany-based ZF Friedrichshafen AG, for 115 Mn pounds ($187 Mn).

ZF will acquire Hansen for 444.8 Mn pounds ($725 Mn) in cash, or 66 pence a share. Suzlon's wholly owned Dutch subsidiary AE Rotor Holding B.V owns 26.6% stake.

While Suzlon's deal with ZF Friedrichshafen AG is under the 'Irrevocable Undertaking,' this will lapse if a new buyer offers at least 12.5% more than ZF's offer.

Founded in 1923, Hansen is a London Stock Exchange-listed company and manufactures wind turbine and industrial gearboxes.

Suzlon had acquired Hansen in 2006 from private equity firms, Allianz Capital Partners and Apax Partners, for $565 Mn. In January 2009, Suzlon sold 10% stake in Hansen to London-based investment company, Ecofin, for around $120 Mn and in the same year in November, Suzlon sold 35% stake in Hansen for around $370 Mn, thereby reducing its stake from 61% to 26%. The stake sale was aim at paying off part of its Rs.13,500 crore debt.

Founded in 1915, ZF makes everything from transmissions and steering systems to chassis components and complete axle systems. The Zeppelin Foundation, administered by the city of Friedrichshafen, owns 93.8% of the company.

Suzlon Energy is planning to acquire around 5% it currently doesn't own in Germany's REpower Systems AG for about 63 Mn euros.

In April, the company hiked its stake in REpower to 95.16% from 90.5% and said its unit AE-Rotor Holding BV had initiated the process to complete they buyout of balance shares.

Under German law, the owner of 95% stake in a company is entitled to a squeeze-out procedure where minority shareholders' stake can be acquired on a compulsory basis.  

Suzlon acquired a majority stake in REpower in 2007 to enter the European wind-energy sector and access the technological capabilities of the German company. Since 2007, Suzlon increased its stake in the company by buying out other shareholders like Martifer and Areva.

by Irfan Khan | July 25,2011 - 04:40 PM

Transaction Reference: BSE