Share purchase agreement signed with Eve Holding in all-cash deal
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Acquisition mode
Hansen engaged
in business of design, development, manufacturing and supply of industrial and wind turbine generator gear boxes.Suzlon to
get indirect ownership of Hansen's subsidiaries in the UK, Australia, Brazil, the US and South Africa.Mumbai, March 17
Wind energy major Suzlon Energy Ltd has agreed to buy Hansen Transmissions International NV, a leading wind turbine gearbox manufacturer in Belgium for euro 465 million (Rs 2,511 crore) in an all-cash deal.
Suzlon Energy on Friday informed stock exchanges that the share purchase agreement for acquisition of 100 per cent shares of Eve Holding NV, Belgium, by Suzlon's wholly owned subsidiary AE-Rotor Holding BV, Holland, has been signed. The signatories to the agreement were AE-Rotor with Allianz Capital Partners GMBH and its affiliates and Apax Partners Worldwide LLP, the sellers of the shares.
Upon satisfaction of the condition precedents under this agreement, the company will get indirect 100 per cent ownership of Hansen Transmissions International NV, Belgium, along with its subsidiaries in the UK, Australia, Brazil, the US and South Africa, which is engaged in the business of design, development, manufacturing and supply of industrial and wind turbine generator gear boxes.
The board of directors that approved the acquisition, also approved to provide a corporate guarantee to collaterally secure the financial assistance of euro 450 million together with interest, commission, charges, and so on on the financial assistance being granted by various lenders to AE-Rotor for the acquisition.
The Suzlon Energy stock closed on BSE today at Rs 1,295.85, gaining Rs 6.50 during the day's trading. It was only on Thursday that Suzlon had announced a $60-million investment plan in China.
In a statement, Mr Tulsi R. Tanti, Chairman and Managing Director, Suzlon Energy, said, "The acquisition of Hansen gives us technological leadership and will make Suzlon a leading integrated wind turbine manufacturer in the world. Although the company will be run as an independent business unit, the acquisition of Hansen will allow us to integrate gearbox technology into the total turbine solution enabling a more reliable and competitive product in the marketplace."
Suzlon, over a period of time, will work with Hansen in developing supply chain synergies, expanding capacity in Belgium and development of additional capacity in new emerging markets in Asia. "The deal has the ability to fuel further growth in Belgium and in Asia. At Hansen we will have business as usual, managing ourselves as an independent business unit, and we shall continue to strive to exceed customer expectations," Mr Matts Lundgren, President and CEO, Hansen, said in a release.
The financing of this transaction is being underwritten and syndicated by Barclays Capital, Deutsche Bank AG and ICICI Bank. Yes Bank is the sole financial advisor, while Linklaters Oppenhoff & Radler, Cologne and Khaintan & Co is the legal counsel to Suzlon for this transaction.
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