Suzlon Sells 10% of Hansen to Ecofin
Posted:
Sunday, February 15th, 2009
Category:
Industrial Skills
Suzlon Energy, which is the world’s fifth largest producer of wind turbines, recently sold ten percent of its subsidiary, Hansen, to a London-based investment firm called Ecofin. Suzlon Energy acquired the Belgium-based Hansen in 2006 for roughly six hundred forty-five million dollars, as well as several other energy companies such as the German wind power company Repower Systems AG. It is increasing its holdings in several companies, such as shares held by Portuguese company Martifier.
Suzlon will acquire these shares in a payment program consisting of several separate payments – the first payment was one of 65 million Euros last December, 30 million Euros in April 2009, and a final payment of 175 Euros in May. Ecofin has agreed not to sell the shares of Hansen they acquire until June, and can also nominate one non-executive director to Hansen’s board of directors. Hansen raised roughly two hundred ninety pounds to set up factories in India and China recently. Ecofin is an investment firm that has made its specialty the global utility and national infrastructure sectors of business. It has roughly four and a half billion dollars in assets under management, for various companies, and manages four separate funds.
Suzlon is purportedly going to raise roughly five hundred million dollars, and is also supposedly undergoing talks with private equity majors Carlyle and TGP to sell a ten percent to fifteen percent stake at around three hundred million. The firm also plans to raise an additional two hundred million through a debt offering, a strategy of which the recent deal with Ecofin appears to be a part. The company has been in something of a twisting, turning turmoil that makes it relatively difficult to determine whether it is growing or shrinking in power, due to the grabs at other power companies it has made in turn with selling stakes of said companies.
Regardless, global power companies are seeing more and more attention and expectations placed on them, and are seen more or less as the solution to a global energy crisis. With the advent of renewable power and the decline of natural gas power, these companies are in a constant battle to see who will come out on top. Whoever does will be regarded as a world authority on renewable fuel, and will very likely have a huge amount of influence and persuasive power with almost every country around the planet.
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