{"id":15473,"date":"2025-02-28T02:53:26","date_gmt":"2025-02-28T02:53:26","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2025\/02\/28\/altech-batteries-limitedacquisition-of-additional-investments-cerenergy-and-silumina\/"},"modified":"2025-02-28T02:53:26","modified_gmt":"2025-02-28T02:53:26","slug":"altech-batteries-limitedacquisition-of-additional-investments-cerenergy-and-silumina","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2025\/02\/28\/altech-batteries-limitedacquisition-of-additional-investments-cerenergy-and-silumina\/","title":{"rendered":"Altech Batteries LimitedAcquisition of Additional Investments CERENERGY and Silumina"},"content":{"rendered":"<\/p>\n
Perth, Australia (ABN Newswire) \u2013 Altech Batteries Limited (ASX:ATC) (FRA:A3Y) (OTCMKTS:ALTHF) is pleased to announce that it has executed a binding Term Sheet to acquire Altech Advanced Materials AG\u2019s (FRA:AMA) 25% equity interest in Altech Energy Holdings GmbH (AEH) (75% holder of CERENERGY(R)) and 25% equity interest in Altech Industries Germany GmbH (AIG) (100% holder of Silumina AnodesTM) including all outstanding shareholder loans from AIG and AEH to AAM; together the \u2018Acquisitions\u2019. <\/p>\n

Highlights <\/p>\n

\u2013 Altech\u2019s offer to acquire Altech Advanced Materials AG (AAM) project stakes accepted by AAM <\/p>\n

\u2013 Altech to acquire additional 18.75% stake in CERENERGY(R) Project and additional 25% stake in Silumina AnodesTM Project including outstanding shareholder loans to AAM <\/p>\n

\u2013 Altech will hold 75% of CERENERGY(R) & 100% of Silumina AnodesTM projects post acquisition <\/p>\n

\u2013 Fraunhofer remains as 25% JV partner of the CERENERGY(R) project <\/p>\n

\u2013 Altech will issue AAM approximately 532 million fully paid ordinary shares <\/p>\n

\u2013 Acquisitions are valued at approximately A$23.3 million <\/p>\n

\u2013 AAM market capitalisation on Frankfurt Stock Exchange is approximately A$38.7 million <\/p>\n

\u2013 Based on DFS, and risk-adjusted AAM value, both projects valued at A$77 million <\/p>\n

\u2013 AAM post-acquisition will be 21% shareholder of ATC <\/p>\n

\u2013 New simplified corporate structure serves to optimise financing options <\/p>\n

\u2013 Potential for ATC to divest acquired interests to strategic partners for project financing <\/p>\n

\u2013 Subject to shareholder approval by both ATC and AAM <\/p>\n

\u2013 General Meeting to be held inclusive of Independent Expert Report <\/p>\n

In accordance with the project\u2019s ownership, the AAM equity interests to be acquired by ATC represent an additional 18.75% stake in the CERENERGY(R) project and an additional 25% stake in the Silumina AnodesTM project (refer Figure 1* Corporate Structure before and after Acquisitions). <\/p>\n

Fraunhofer remains as 25% JV partner of the CERENERGY(R) project. <\/p>\n

As consideration for the Acquisitions, and subject to shareholder approval, Altech will issue to AAM approximately 532 million fully paid ordinary shares, resulting in AAM holding 21% of Altech\u2019s issued share capital post Acquisitions. Based on the volume weighted average price (VWAP) of Altech shares being $0.044 over the 15 trading days prior to this announcement, the total consideration offered is valued at A$23.3 million. The shares proposed to be issued to AAM will be subject to a voluntary escrow period of 12 months from the date of issue. The Acquisition is still subject to several conditions precedent, including the approval of the Acquisitions by shareholders at the General Meetings of AAM and ATC. <\/p>\n

Valuation of Transaction <\/p>\n

AAM\u2019s current market capitalisation on the Frankfurt Stock Exchange A$38.7 million (equal to EUR23.2 million), while the consideration offered for its sole assets amounts to A$23.3 million. <\/p>\n

The Cerenergy Project DFS has a Net Present Value (NPV) of A$281 million, with AAM\u2019s 18.75% stake equating to A$52 million at full financing. Applying a standard 0.23 NAV discount for financing risk, the adjusted valuation is A$12 million. The Silumina Project DFS has an NPV of A$1.14 billion, with AAM\u2019s 25% stake translating to A$285 million. After applying the same 0.23 NAV discount, the adjusted valuation stands at A$65 million. In total, the risk-adjusted value of both projects is A$77 million, compared to the A$23.3 million consideration offered for their acquisition. <\/p>\n

AAM initially acquired a 25% stake in both the CERENERGY and Silumina Projects from ATC for a total consideration of A$8 million. Following the acquisition, AAM made additional capital contributions in response to cash calls from both project entities, providing a total of A$10.8 million to support project development, operational expenses, and financing commitments. This brings AAM\u2019s total investment in the projects to date to A$18.8 million compared to the A$23.3 million consideration offered for their acquisition. <\/p>\n

Post Acquisitions <\/p>\n

Post Acquisitions, Altech will own 100% of the Silumina AnodesTM Project and 75% of the CERENERGY(R) Battery Project, with Fraunhofer as 25% joint venture partner. <\/p>\n

Strategic Rationale and Benefits <\/p>\n

This transaction represents a pivotal moment for Altech\u2019s strategic growth. By acquiring 100% ownership of Silumina AnodesTM and 75% ownership of CERENERGY(R), Altech is positioning itself to accelerate the development and commercialisation of these high-value projects. The Silumina AnodesTM project is a breakthrough in battery material technology, incorporating high-purity alumina in silicon anodes to improve battery performance. The CERENERGY(R) project, meanwhile, is at the forefront of next-generation sodium chloride battery development, offering a sustainable alternative to conventional lithium-ion technology. <\/p>\n

Additionally, the transaction presents a practical solution to recent funding challenges by AAM. Uncertainty among German investors regarding AAM\u2019s ownership structure has complicated AAM\u2019s fundraising efforts and hindered sustained support in Germany. <\/p>\n

Altech will have the autonomy to make key investment and operational decisions without requiring external approvals, thereby enhancing project execution efficiency. Furthermore, the Acquisitions will provide Altech with a stronger negotiation position when engaging with potential strategic partners, customers, and financiers. Through these transactions, AAM will retain long-term upside potential through its new equity stake in Altech. This structure aligns the interests of both companies and ensures that AAM continues to benefit from future successes. AAM will remain as an investment company on the Frankfurt Stock Exchange rather than holding direct interest of both projects. <\/p>\n

Consolidating ownership reduces the complexity of project governance and enhances Altech\u2019s ability to execute strategic initiatives with greater agility and less complexity. Additionally, the issuance of shares to AAM in lieu of cash payments preserve Altech\u2019s balance sheet strength, allowing it to deploy capital more effectively towards project development and commercialisation. <\/p>\n

The Board of Altech believes the transaction will deliver significant strategic benefits, including: <\/p>\n

\u2013 Consolidation of ownership in the Silumina AnodesTM and CERENERGY(R) projects, enabling streamlined decision-making and project execution <\/p>\n

\u2013 Improved operational flexibility and efficiency to fast-track commercialisation efforts <\/p>\n

\u2013 Addressing recent funding challenges faced by AAM and improving capital structure alignment <\/p>\n

Conditions Precedent <\/p>\n

The completion of the Acquisitions is subject to: <\/p>\n

\u2013 All necessary regulatory approvals, including: <\/p>\n

o ASX Listing Rule 7.1 shareholder approval for the issuance of consideration shares. <\/p>\n

o Shareholder approval under item 7, section 611 of the Corporations Act 2001 (Cth), to the extent that AAM, or any of its shareholders, will increase its voting power above 20% in Altech. <\/p>\n

\u2013 Approval from the Australian Treasurer under the Foreign Acquisitions and Takeovers Act 1975 (Cth), if required. <\/p>\n

\u2013 Approval by AAM\u2019s shareholders meeting <\/p>\n

\u2013 Execution of an escrow deed between Altech and AAM regarding the voluntary escrow conditions. <\/p>\n

Board Recommendation <\/p>\n

Mr Hansjoerg Plaggemars and Mr Uwe Ahren, being current Managing Directors of AAM, did not take part in any voting on the Acquisitions in their position as Board members of Altech and do not make a recommendation on the proposal. Mr Iggy Tan, being a previous Managing Director of AAM (resigned 31 December 2024) did not take part in any voting on the Acquisitions and does not make a recommendation on the proposal. <\/p>\n

The Independent Directors of Altech, consisting of Mr Luke Atkins, Mr Dan Tenardi and Mr Peter Bailey, unanimously recommend that shareholders vote in favour of the Acquisitions, subject to the Independent Expert\u2019s Report concluding that the transaction is fair and\/or reasonable to Altech shareholders. Altech\u2019s Board strongly believes that this transaction will enhance shareholder value over the long term by consolidating ownership, streamlining decision-making and ensuring that both projects progress efficiently towards commercialisation. The transaction structure ensures that AAM remains aligned with Altech\u2019s success while addressing funding constraints in a manner that benefits all stakeholders. <\/p>\n

Next Steps <\/p>\n

Altech will continue working closely with AAM to finalise definitive agreements and complete all required regulatory and shareholder approvals. Shareholders will be kept informed of any significant developments, and further announcements will be made as key milestones are achieved. The Company remains committed to executing this strategic initiative in a manner that enhances shareholder value and accelerates its growth objectives. The Board looks forward to engaging with shareholders throughout the approval process and appreciates the ongoing support from its investors. <\/p>\n

To view the Indicative Timetable, please visit:
https:\/\/abnnewswire.net\/lnk\/DK6T5Z7Q <\/p>\n

About Altech Batteries Ltd: \u00a0<\/p>\n

Altech Batteries Limited (ASX:ATC) (FRA:A3Y) is a specialty battery technology company that has a joint venture agreement with world leading German battery institute Fraunhofer IKTS (\u2018Fraunhofer\u2019) to commercialise the revolutionary CERENERGY(R) Sodium Alumina Solid State (SAS) Battery. CERENERGY(R) batteries are the game-changing alternative to lithium-ion batteries. CERENERGY(R) batteries are fire and explosion-proof; have a life span of more than 15 years and operate in extreme cold and desert climates. The battery technology uses table salt and is lithium-free; cobalt-free; graphite-free; and copper-free, eliminating exposure to critical metal price rises and supply chain concerns. <\/p>\n

The joint venture is commercialising its CERENERGY(R) battery, with plans to construct a 100MWh production facility on Altech\u2019s land in Saxony, Germany. The facility intends to produce CERENERGY(R) battery modules to provide grid storage solutions to the market. <\/p>\n

Source:
Altech Batteries Ltd <\/p>\n

Contact:
Corporate
Iggy Tan
Managing Director
Altech Batteries Limited
Tel: +61-8-6168-1555
Email: info@altechgroup.com <\/p>\n

Martin Stein
Chief Financial Officer
Altech Batteries Limited
Tel: +61-8-6168-1555
Email: info@altechgroup.com <\/p>\n<\/p>\n<\/div>\n

News Provided by ABN Newswire via QuoteMedia<\/p>\n<\/p>\n

This post appeared first on investingnews.com<\/div>\n","protected":false},"excerpt":{"rendered":"

Perth, Australia (ABN Newswire) \u2013 Altech Batteries Limited (ASX:ATC) (FRA:A3Y) (OTCMKTS:ALTHF) is pleased to announce that it has executed a binding Term Sheet to acquire Altech Advanced Materials AG\u2019s (FRA:AMA) 25% equity interest in Altech Energy Holdings GmbH (AEH) (75% holder of CERENERGY(R)) and 25% equity interest in Altech Industries Germany GmbH (AIG) (100% holder […]<\/p>\n","protected":false},"author":0,"featured_media":15474,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-15473","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/15473","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=15473"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/15473\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/15474"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=15473"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=15473"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=15473"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}