MERGER & ACQUISITION

OF
SUZLON & HANSEN

Presented by -

Mahendra
Amol ,
Praveen ,
Rakesh .
On March 17, 2006 , Suzlon Energy Limited (SEL) signed a
definitive agreement for the strategic acquisition of Hansen
Transmissions for EUR 465 million (RS 2511crores) enterprise
value, in an all cash transaction.

Suzlon Energy Limited Hansen Transmissions

 Company Profile – SUZLON
Suzlon Energy Limited is a global wind turbine manufacturer.
Presence - Australia, Belgium, Brazil, Canada, China, Denmark,
Germany, Greece, India, Italy, New Zealand, Nicaragua, Portugal,
Romania, Spain, Sri Lanka, The Netherlands, Turkey, Ukraine, UK,
USA .
Product Portfolio- S88-2.1 MW, S82-1.5 MW, S66-1.25 MW, S64-
1.25 MW, S52-600 Kw.
 Company Profile – HANSEN

Hansen Transmissions International NV ("Hansen"), is a largest

wind energy and industrial gearbox manufacturers in the world,

Presence - UK, US, South Africa ,Australia , Iceland , Hong

Kong

Product - curtain wall, commercial windows, fire resistant and

structural glazing.
 Why Acquisition by the Suzlon over Hansen

 technological leadership

 enabling a more reliable and competitive product

 highest level of vertical integration

 design and manufacture better products:

 leverage
under this agreement, the company will get indirect 100 per cent
ownership of Hansen Transmissions International NV, Belgium,
along with its subsidiaries in the UK, Australia, Brazil, the US
and South Africa,

The all-cash transaction of 465 million euro, which is subject to

merger control approval, will provide Suzlon, also an
international player, with a company that has 23 per cent of the
world market for wind turbine gearboxes and which is currently
investing to raise its capacity in this field from its current 3,600
MW a year.
INTANGIBLE ASSET INVOLVE IN THE AQUISITION:

Market capitalization = no. of equity share in the market * price

of one share in the market.

Intangible asset = Market capitalization – Total net tangible asset.

Total net tangible asset = Total tangible asset – Total liability

Calculation:

MARKET CAPTALIZATION
= 2, 88, 00000000/10*1791= 4927680000000

Total net tangible asset = Total liability- total tangible asset

= 5457.16 cr. – 1628.96 cr.

= 3828.2 cr.

Intangible asset = Total tangible asset – Total liability

= 4927680000000-38282000000

= 4889398000000
The financing of this transaction is being underwritten and
syndicated by
• Barclays Capital,

•Deutsche Bank AG and

•ICICI Bank.

Sole financial advisor

• Yes Bank

The legal counsel to Suzlon for this transaction is

• Linklaters Oppenhoff & Radler,

• Cologne and Khaintan & Co

 Impact Of Mergers And Acquisitions

• on workers or employees

• on top level management

• on shareholders
Conclusion

As we have discussed what is the reasons and need for Suzlon to acquire
the Hansen transmission international .Basically Hansen were manufacturing
turbine gearbox.suzlon who is involve in the energy generation with the help of
wind energy. This is reason why Suzlon buy out Hansen, to have complete
dependency on own self for wind energy production. Turbine is the important
component for the wind energy generation.
The deal was final in the month of March 2006 with have the amount of
2511 crore all in cash. This deal is going to help Suzlon to have complete
dependant on his business. The Suzlon energy is one the energy generating
wide vision for India to get free of the non-conventional source of energy. This
acquisition is a land mark for energy sector. Mr. 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 manufacturer in the world.
The acquisition of Hansen will allow help to integrate gearbox
technology into the total turbine solution enabling a more reliable and
competitive product in the marketplace.
Thank you