Ecofin acquires 10% stake in Suzlon subsidiary Hansen Transmissions, Suzlon Wind Energy
Release Date: 2009-01-01
AE-Rotor Holding B.V. (“AERH”), a wholly owned indirect subsidiary of Suzlon Energy Limited (“Suzlon”), the world’s fifth leading and India’s largest wind turbine manufacturer* announced today that it has agreed on 31 December 2008 to sell 67,010,421 shares (10% equity) in Hansen Transmissions International NV ("Hansen") (LSE ticker 'HSN'), an established global gearbox designer, manufacturer and supplier with a leading position in the wind turbine gearbox market, to funds managed by Ecofin Limited, a London based specialised investment firm (together, "Ecofin"). Following completion of the acquisition, Ecofin will have a voting and economic interest in Hansen of approximately 11.62%. Ecofin has undertaken to Suzlon, subject to customary exceptions, not to dispose of the shares acquired from Suzlon until after 30 June 2009. The lock-up is renounceable in certain circumstances, as outlined below. Following this disposal, the Suzlon Group will retain a voting and economic interest in Hansen of approximately 61.28%.
The terms of the relationship agreement entered into between Hansen and Suzlon give Suzlon the right to appoint two non-executive directors to the Board of Hansen for so long as its shareholding in Hansen is a minimum of 26%. Under the terms of the agreement entered into with Ecofin, Suzlon has granted Ecofin the right to nominate one such director for so long as Ecofin’s shareholding in Hansen is a minimum of 8%. Ecofin has indicated that it does not currently intend to exercise this right. This right is renounceable at Ecofin’s option within 3 months following completion, in consideration for the release of the lock-up obligation in respect of the shares acquired by Ecofin. Suzlon remains a committed long term strategic investor in Hansen.
| Type: | NORMAL |
| Company: | Suzlon Wind Energy |
| Country: | India |