New Delhi: 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.
Gaurav Singh contributed to this story.