Presented by -

MahendraAmol , Praveen ,Rakesh .

MERGER & ACQUISITIONOF SUZLON & HANSEN

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