20th Dec 2019 16:28
(Alliance News) - Bushveld Minerals Ltd said Thursday a consortium of investors, of which the vanadium producer is a part, has signed an agreement for the acquisition of Enerox GmbH, the battery subsidiary of CellCube Energy Storage Systems Inc.
Under the sale and purchase agreement, the consortium will acquire a 25% stake in Enerox for EUR150,000 in total. The 25% holding will then be separated in equal proportions amongst each member of the consortium.
The consortium has been granted exclusivity until the end of February 2020 to complete due diligence, following which it will start negotiations to buy the remaining share capital for EUR10.9 million on a debt free basis.
To date, the consortium has invested EUR600,000 into Enerox to fund ongoing working capital, and has committed to make three further payments of EUR300,000 each in December, January and February.
In addition to the EUR150,000 payment for the 25% stake, this will bring the total initial investment in Enerox to EUR1.7 million.
Bushveld Minerals said the investment is in line with the company's strategy with vanadium redox flow battery firms, and provide access into the rapidly growing energy storage market.
"Enerox is one of the most established VRFB original equipment manufacturers with over 130 global installations to date. Bushveld's participation in this investment enhances our VRFB Investment Platform, while providing additional strength to the company's vertical integration strategy, supporting VRFB adoption and helping to grow the overall vanadium market," said Chief Executive Officer Fortune Mojapelo.
Shares in Bushveld Minerals - which is based in Illovo, South Africa - were down 2.5% at 19.20 pence on Friday in London.
By Dayo Laniyan; [email protected]
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