Suzlon in talks to sell Hansen stake

Date: 15-06-2009

Suzlon, the world’s fifth-largest wind turbine maker, is exploring the option of selling a large portion of its stake in Belgian company Hansen Transmissions, to raise money for retiring part of its Rs 12,000-crore debt. The company could also consider selling its entire stake in Hansen, according to people close to the development.

The Tulsi Tanti-controlled Suzlon, which owns 61.28% in Hansen, has appointed a merchant banker to advise it on the deal. The company is also heard to be currently evaluating four bids, mostly from strategic players, which it has received so far.

The stake sale is in addition to the option of a qualified institutional placement (QIP) of around Rs 2,000 crore, which Suzlon is exploring, as current market conditions are convenient for such an instrument. The current market cap of Hansen is pegged at around $1.6 billion, (about Rs 7,600 crore at current exchange rates) which would value Suzlon’s stake in the wind turbine and industrial gearbox maker at $980 million (about Rs 4,700 crore at current exchange rates). Since it’s a strategic stake, it is expected that Suzlon could get some premium to the prevailing market price from the Hansen stake sale.

The two moves together will help in reducing debt on Suzlon’s balance sheet, which comes to around Rs 12,000 crore, including bondholders. It may be mentioned that Suzlon had recently failed to recast covenants with some of its foreign currency convertible bond (FCCB) holders.

Latest Financials

Latest Financials

 - Suzlon Energy Ltd.

  Standalone Consolidated
TTM EPS (Rs) -13.94 -2.87
TTM Sales (Rs. Cr.) 2,471 4,978
BVPS (Rs.)
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
-13.36 -16.07
Reserves (Rs. Cr.)
The term reserve represents a part of shareholders' equity, except for basic share capital. Reserves are created from retained earnings and shareholders' contributions in the form of share premium etc.
-8,169 -9,611
Price to Book Value is the ratio of stock's market value to its book value. It gives some idea of whether investors are paying too much for what would be left if the company went bankrupt immediately. To get high returns, it is advisable to invest in a company which satisfies all the criteria set by MoneyWorks4me and which has low price to book value ratio.
-0.25 -0.21
It is the ratio of market price and earnings per share. It shows what the market is willing to pay for the company's earnings. To get high returns it is advisable to invest in the company which satisfies all the criteria set by MoneyWorks4me and which has low price to earnings ratio as compared to the industry.
0.00 0.00
From the Market
52 Week High / Low (Rs) 8.69/2.70
All Time High / Low (Rs) 460.00/2.70
Volume Traded 50,85,120
Market Cap (Rs. Cr.) 1,782
Equity (Rs. Cr.) 1,063.95
Face Value (Rs) 2
Industry PE
Industry price to earnings per share tells on an average, what the market is willing to pay for overall earnings in that industry. It can be used as a benchmark price to earnings ratio for the companies in that industry.
3.35 0.00 (0.00%)
Jun 19, 18:59
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