The Hindu : Business : Suzlon to acquire Belgian company

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Saturday, Mar 18, 2006

Business

Business

Suzlon to acquire Belgian company

Staff Correspondent

All-cash transaction for 465 m euros ($565 m)

MUMBAI: Suzlon Energy Ltd., Pune, through its Netherlands-based subsidiary AE-Rotor Holding BV, has entered into a definitive agreement to acquire Belgium-based Hansen Transmissions International NV, for a consideration of 465 million euros ($565 million) enterprise value in an all-cash transaction.

Hansen is one of the largest wind energy and industrial gearbox manufacturers in the world.

The transaction is subject to merger control approval and, on completion, will result in Suzlon acquiring shares of `Eve Holding,' the holding company of Hansen, from private equity firms Allianz Capital Partners GmbH and its affiliates and funds advised by Apax Partners Worldwide LLP. The closing of the transaction is subject to customary closing conditions and regulatory approvals.

Syndicated funding

Suzlon intends to fund this transaction using a combination of its internal cash reserves and credit facilities.

Acquisition financing is being underwritten and syndicated by Barclays Capital, Deutsche Bank AG and ICICI Bank. YES Bank is the sole financial advisor with Linklaters Oppenhoff & Radler, Cologne, and Khaitan & Co. as legal counsel to Suzlon for this transaction. UBS Investment Bank is acting as financial advisor and Hengeler Mueller as the legal counsel to the sellers.

Tulsi R. Tanti, Chairman and Managing Director, Suzlon Energy, said, "The acquisition of Hansen gives us technological leadership and will make Suzlon a leading integrated wind turbine maker in the world.

Although the company will be run as an independent business unit, the acquisition of Hansen will allow us to integrate gearbox technology into the total turbine solution, enabling a more reliable and competitive product in the marketplace.''

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