Suzlon to sell 26% in unit Hansen

Germany's ZF Friedrichshafen AG is to buy Belgium-based Hansen Transmissions, which makes gearboxes for wind turbines, for USD 725.5 million to consolidate its position in the market for wind energy.

The offer, pitched at 66 pence in cash for each Hansen share, values the company at 444.8 million pounds and is at a 96% premium to the company's Friday close in London.

"The combination of ZF and Hansen's wind gearbox activities represents a natural extension of our strategic decision to enter the growing and exciting field of wind energy," Hans-Georg Harter, Chief Executive Officer of ZF said on Monday.

ZF, which was founded in 1915 makes everything from transmissions and steering systems to chassis components and complete axle systems. The Zeppelin Foundation, administered by the city of Friedrichshafen, owns 93.8% of the company.

ZF said it has received undertakings from Hansen's two largest shareholders, Indian wind turbine maker Suzlon Energy and Ecofin, which own about 38.4% of the company's outstanding shares, to accept the offer.

Hansen shares rose 92% to 65 pence and were the top percentage gainers in London.

Suzlon shares rose as much as 5.4%. At 0830 GMT, the stock was up 2.7% at Rs 54.35 in a flat Mumbai market.

Suzlon has been weighed down by debt worries since it bought Hansen in 2006 and built up a 91% stake in Germany's REpower in the following two years.

"This is in line with our strategy to optimize and strengthen our balance sheet," Suzlon chairman Tulsi Tanti said in a statement.

"Suzlon and Hansen have developed a strong partnership on technology and supply chain...we expect this partnership to continue and strengthen further over the medium term."

($1 = 0.613 British Pounds)