Published by Insider Media
BATTERY TECHNOLOGY FIRM ACQUIRED IN £100M DEAL
A battery technology specialist has been acquired by an international group in a £100m deal.
Mercia Asset Management has confirmed the completion of the sale of Faradion Ltd for a total enterprise value of £100m to Reliance New Energy Solar Ltd (RNESL), a wholly owned subsidiary of India-based conglomerate Reliance Industries.
RNESL has pledged to invest £25m as growth capital to accelerate commercial roll out.
Sheffield-based Faradion specialises in sodium-ion battery technology that provides low-cost, high-performance and sustainable energy storage.
Mercia held a 16.4 per cent fully diluted direct holding in Faradion and has received initial unrestricted cash proceeds of £18.6m, plus a further £800,000 ring-fenced for three months.
Mercia made its first direct investment in Faradion in January 2017 and its managed funds have held equity stakes in the business since its inception in 2010.
Dr Mark Payton, chief executive at Mercia Asset Management, said: "We are delighted to announce our successful exit from Faradion, delivering excellent returns for both our shareholders and fund investors. Importantly, we have once again demonstrated our ability to realise significant cash returns from our direct investments, underpinning the evergreen status of our balance sheet.
"This latest cash exit, which is 43.5 per cent above September 2021's carrying value, also demonstrates the significant potential unrealised value in the Group's direct investment portfolio.
"I am also pleased that we can point to this Sheffield-based business where Mercia has provided both founding investment and subsequent scale-up capital, plus help in building the right management team alongside the founders."
James Quinn, chief executive at Faradion, added: "Faradion has been one of the first to champion sodium-ion battery technology. Reliance is the perfect partner for supporting Faradion’s growth in the rapidly expanding Indian market and to jointly speed up the transformation of the global energy market. Becoming part of the Reliance group validates the incredible work our team has done in advancing sodium-ion technology."
Mercia Asset Management is advised by Canaccord Genuity (nominated adviser and joint broker) and Singer Capital Markets (joint broker).