Wind turbine manufacturer Suzlon Energy, which is reeling under nearly Rs 14,000- crore of debt, on Thursday raised about Rs 1,735 crore (pound 224 million) by selling a 35 per cent stake in Belgium-based gearbox maker Hansen Transmissions International BV.
In a press release, Suzlon said its wholly-owned subsidiary AE-Rotor Holding BV completed a secondary placing of 23.6 crore depository interests in Hansen, representing 35.22 per cent of the aggregate voting rights, at 95 pence a depository interest. Hansen’s free float increases from 38.72 per cent to 73.94 per cent.
AE-Rotor Holding continues to own a 26.06 voting right in Hansen. No board changes envisaged in Hansen, according to the release.
Hansen’s shares were down close to 9 per cent on the London Stock Exchange at 105 pence, against Wednesday’s close of 116 pence.
The release quoted Suzlon’s Chairman and Managing Director, Mr Tulsi Tanti, as saying that the company’s acquisition of Hansen (in 2006 for about Rs 2,500 crore) was guided by long-range strategic interests that "we see being delivered today." Since its acquisition, Hansen had added manufacturing capacities.
It quoted Mr Sumant Sinha, Suzlon’s COO, as saying that today’s transaction was an important step towards optimising the company’s debt profile. "We have developed a good relationship with Hansen, hence securing our gearbox supplies for the long term. As the majority shareholder in the company, we will continue to work towards creating even greater value," he said.
Suzlon had appointed BofA-Merrill Lynch and Morgan Stanley as the managers and joint book-runners for the purpose.
In a separate regulatory filing, Hansen confirmed that it was not engaged in any discussions that might lead to an offer for Hansen and was no longer in an "offer period." "We understand that the announcement from Suzlon has brought to an end Suzlon’s evaluation of alternatives regarding its shareholding in Hansen. We welcome the clarity this brings and look forward to resuming normal market communication activities now that the restrictions under the "offer period" have been lifted," it said
One of the promoter has pledged 2.8 crore shares, thus total shares pledged by the promoter is about 28%
Investors/analysts both are confused about this share whether buy/sell/hold.
In the past people were confused in similar situation in Reliance shares, let us accumulate some qty at every fall and hope for the best.
Dear,
You are correct,Suzlon is struggling to come out of debts,if you are an investor for a L T of 2 to 3 years buy on dips,Patience will pave way for wealth in this scrip,but the decesion should be yours,
with regards
rvk41
| NIFTY 
