Zee News

Mumbai, Aug 8: The Belgian unit of Indian wind turbine maker Suzlon Energy is looking at buying at least half the founders' stake in India's Shanthi Gears, a business daily reported on Friday.

Hansen Transmissions International NV, 71.3 percent owned by Suzlon, plans to buy between 50-100 percent of the founders' stake at 30 percent premium to the market price, the newspaper said, citing a banker familiar with the negotiations.

Shanthi Gears, which makes gears for textiles, sugar firms and chemical companies, recently expanded to making gears for wind turbines.

Its founders own 45 percent of the firm and its stock closed at Rs 67.40 on Thursday. Neither Suzlon nor Shanthi Gears officials could be reached for comment immediately. If the deal goes through Hansen will have to make an open offer for another 20 percent to conform to Indian laws, Mint said.

"We have mandated Ernst & Young to find a strategic partner to grow our business," Shanthi Gears Chairman P Subramanian was quoted as saying in the paper. "Right now we are looking at a strategic partner who can infuse technology."