Suzlon raises cash with sale of part of Hansen gearbox subsidiary

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AE-Rotor Holding BV, a wholly owned indirect subsidiary of India's Suzlon Energy, is selling a 10% equity stake in wind turbine gearbox manufacturer Hansen Transmission, based in Belgium. The buyer is Ecofin, an investment firm based in London. The deal, estimated to be worth almost EUR 80 million, means Ecofin will have a voting and economic interest in Hansen of approximately 11.62%, while's Suzlon's interest falls to 61.28%. Under the terms of the deal, Ecofin has agreed not to dispose of its shares until after June 30, 2009, although this can be renounced within three months of completion should Ecofin require that. For that to happen though, it would also have to relinquish the right, granted by Suzlon, to nominate a non-executive director to the Hansen board. So far, Ecofin has indicated it does not intend to exercise this right. Suzlon has the right to appoint two non-executive directors as long as its shareholding in Hansen remains above 26%. The company says it "remains a committed long term strategic investor in Hansen."

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