Tue, 10 Jan 2023 | BUSINESS SALE
UK battery firm Britishvolt is in talks with a consortium of investors over a potential majority sale to secure the business’ future. Reports have indicated that the company is in discussions over a £160 million rescue deal with an oil and gas investor with links to Indonesia.
In a statement the company confirmed talks over a possible takeover, saying a deal would "provide Britishvolt with the long-term sustainability and funding necessary to enable it to pursue its current plans to build a strong and viable battery cell R&D and manufacturing business in the UK".
According to reports, the consortium is led by UK-based private equity investor DeaLab Group, which has been active in the Indonesian fossil fuel and renewable energy markets, and associated metals business Barracuda Group.
Britishvolt, which is planning a £3.8 billion gigaplant in Blyth, Northumberland, was reported to be on the verge of collapse in November 2022, before securing funding to support its ongoing operations. The company employs more than 300 staff, with employees having agreed to a temporary salary reduction in November.
The deal would reportedly see investors acquire 95 per cent of the business for £30 million, nearly wiping out its existing shareholders, with a further £128 million committed to funding the next stage of its growth plans.
The deal, which will reportedly be discussed by the firm’s board later this week, would value the firm at under £32 million, despite the company having achieved “unicorn” status (i.e. a valuation of over $1 billion, or £820 million) around a year ago.
Executive chairman Peter Rolton has written to the company’s shareholders urging approval of the deal, saying that it would otherwise face a “catastrophic” administration.
Britishvolt’s planned site in Blyth would be expected to create over 3,000 direct jobs, as well as an additional 5,000 roles within its wider supply chain. The company’s struggles have seen construction on the plant, which would be capable of producing 30 gigawatt hours of batteries per year, delayed by 18 months until the middle of 2025.
Read more about M&A in the UK's automotive industry.
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