Suzlon sells 10 percent in Belgian firmJanuary 2nd, 2009 - 3:09 pm ICT by IANS
New Delhi, Jan 2 (IANS) Renewable energy major Suzlon has offloaded 10 percent of the equity it holds in a Belgian transmission company to a London-based investment firm, it announced Friday.Suzlon holds majority stake in Antwerp-based Hansen Transmissions International through a wholly-owned subsidiary, AE-Rotor Holding.
According to a regulatory statement, AE Rotor sold a little over 67 million shares of Hansen Transmissions, representing 10 percent equity, to Ecofin Dec 31.
Even after the sale, Suzlon continues to hold a voting and economic interest of about 61.28 percent in Hansen, while Ecofin has retained 11.62 percent.
As per the terms of the sale, Suzlon said Ecofin has undertaken not to sell the acquired shares until June 30.
Further, Suzlon will have the right to appoint two non-executive directors to the Hansen Board as long as it controls a minimum of 26 percent of the company.
Ecofin will also have the right to nominate one director as long as its stake is at a minimum of 8 percent. “Ecofin has indicated that it does not currently intend to exercise this right,” said the company statement.
“This right is renounceable at Ecofin’s option within three months following completion, in consideration for the release of the lock-up obligation in respect of the shares acquired by Ecofin,” it added.