Suzlon to sell 35% stake in Belgian subsidiary
Suzlon Energy, Asia’s largest wind turbine manufacturer, has decided to divest 35 per cent stake in its Belgian company, Hansen Transmissions, through sale of shares. Hansen, listed in the LSE, is a wind turbine gearbox manufacturer, reports HT Correspondent.business Updated: Nov 19, 2009 22:03 IST
Suzlon Energy, Asia’s largest wind turbine manufacturer, has decided to divest 35 per cent stake in its Belgian company, Hansen Transmissions, through sale of shares. Hansen, listed in the London Stock Exchange, is a wind turbine gearbox manufacturer.
The Pune-based, Tulsi Tanti-promoted company said its Netherlands-based wholly-wned subsidiary, AE-Rotor Holding BV, has appointed merchant bankers to sell 35 per cent stake in Hansen. Suzlon at present holds a 61 per cent stake in Hansen. The sale is expected to fetch Suzlon Rs 2,108 crore (£272 million, $433 million) according to market analysts.
The stake sale would be conducted through a book-building process and Suzlon’s subsidiary has appointed BofA Merill Lynch and Morgan Stanley as the managers and joint book-runners for the sale.
“The books for the placing have been opened. Pricing and allocations are expected to be announced as soon as practicable. The timing for the closing of the books will be at the sole discretion of the managers. In the event of over-subscription, the managers may reduce or reject purchase orders,” Suzlon said in a communication to the stock exchanges.
The stake sale is part of Suzlon’s plans to develop a sustainable capital structure. The proposed sale would not impact long-term supply arrangements of Hansen.
The Suzlon scrip closed Wednesday 2.52 per cent up at Rs 75.20 at the BSE.