Mumbai: Wind turbine maker Suzlon Energy on Friday said it has sold 35.22% stake in Belgian firm Hansen Transmissions for $370 million (about Rs1,700 crore).
Suzlon through its Netherlands-based subsidiary AE-Rotor Holding BV, has sold 236 million depository interests, representing equity shares in Hansen, Suzlon said in a filing to the Bombay Stock Exchange (BSE).
Post the sell-off Suzlon’s holding in Hansen has come down to 174.63 million shares or 26.06% stake, from the earlier 61%.
The company sold Hansen shares at 95 pence, which is significantly lower than the current share price of 113 pence.
“There are no board changes in Hansen envisaged following the placing,” Suzlon said.
Suzlon currently has the the right to appoint up to two non-executive directors on the board of Hansen till it holds 26% of the company’s voting rights.
Shares of Suzlon were trading 2.13% down at Rs73.60 in the morning trade on the BSE.
Meanwhile, in a regulatory filing to the London Stock Exchange Hansen said “the announcement from Suzlon has brought to an end Suzlon’s evaluation of alternatives regarding its shareholding in Hansen.”
BofA Merill Lynch and Morgan Stanley acted the managers and joint book runners for the issue.
The Tulsi Tanti promoted firm currently has gross debt of Rs12,500 crore and has restructured its bonds issue earlier this year.
The company expects that with the said stake sell the gross debt would reduce by about 10%.
“Along with other funding that we are raising from Indian banking sector. Our expectation is that the acquisition loan that we have taken to fund the acquisition of Hansen and RePower will now get fully paid off as a result of both this transactions,” Suzlon COO Sumant Sinha told CNBC TV-18.
The said stake sale would not have any impact on the long-term supply arrangements that Suzlon and its subsidiaries have with Hansen, the Belgian company had said on Thursday.
In January, Suzlon had sold 10% of its Hansen stake to investment firm Ecofin for Rs600 crore.
Hansen, whose current market capitalisation stands at £757 million, is engaged in designing, developing, manufacturing and supplying industrial and wind turbine generator gearboxes.