Suzlon Energy, India’s largest wind turbine maker, is set to receive Pound 115 million from Germany’s ZF Friedrichshafen for its remaining stake in subsidiary Hansen Transmissions International NV by October 11. ZF, a manufacturer of auto parts and agricultural machinery, informed that it has fulfilled all conditions of its £445-million cash offer for Hansen and the deal has been rendered “unconditional”. The share sale proceeds will help Suzlon repay its debts.
The company had a consolidated debt of Rs 12,263 crore as on March 31. Its standalone cash balance was Rs 431 crore and consolidated cash balance Rs 3,121 crore. In November 2009, Suzlon reduced its stake in gearbox maker Hansen to 26.06% by selling 35.22% stake in secondary market deals at 95 pence a share. In July, it entered into a pact with ZF International, a wholly-owned subsidiary of Germany’s ZF Friedrichshafen AG, to sell its balance holding at 66 pence a share. Suzlon had acquired Hansen in 2006 to beef up its component supplies. However, organic and inorganic growth after the acquisition increased Suzlon’s debt burden.
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