Reliance Industries Ltd (RIL), in a stock exchange communication, said that it will be acquiring UK-based battery technology company Faradion Ltd.
RIL said that its wholly-owned subsidiary Reliance New Energy Solar Ltd (RNESL) has entered into an agreement with Faradion and its shareholders for acquiring 100 per cent of the equity shares of Faradion through secondary transactions for a total value of GBP (Great Britain Pounds) 94.42 million, based on an enterprise value of GBP 100 million.
The acquisition will have two components:
- 88.92 per cent of the equity shares of Faradion for an aggregate consideration of GBP 83.97 million at closing which is expected in early January 2022.
- 11.08 per cent of the equity shares of Faradion within three years from closing for an aggregate consideration of up to GBP 10.45 million
The indicative exchange rate, as of January 1, 2022, is 1 GBP = Rs.100.78
New equity shares
RNESL has also agreed to subscribe to new equity shares of Faradion for an aggregate consideration of GBP 31.59 million of which GBP 25 million is as growth capital for accelerating commercial roll out and the balance for repayment of debt and other fees.
Sodium-ion technology
Based out of Sheffield and Oxford in UK and with its patented sodium-ion battery technology, Faradion is one of the leading global battery technology companies. It has competitively superior, strategic, wide-reaching and extensive IP portfolios covering several aspects of sodium-ion technology.
Technology deployment
Reliance will use Faradion’s state-of-the-art technology at its proposed fully integrated energy storage giga-factory as part of the Dhirubhai Ambani Green Energy Giga Complex project at Jamnagar, India.
Equity stake in Sterling and Wilson Renewable Energy
In an independent announcement, Reliance Industries said that upon receipt of approval from the Competition Commission of India, *Sterling and Wilson Renewable Energy Ltd (SWREL, formerly Sterling and Wilson Solar Ltd) has made an allotment to Reliance New Energy Solar Ltd (RNESL) of 2.33 crore equity shares of Rs.1 by way of preferential allotment for cash at a price of Rs.375 per equity share (including premium of Rs.374 per equity share) aggregating around Rs.1,100 crore. Post such allotment, RNESL holds 15.46 per cent of the total paid-up equity share capital of SWREL. Reliance Industries added that RNESL has also become a promoter of SWREL besides the existing promoter and promoter group of the SWREL in accordance with extant SEBI guidelines.
In October 2021, Reliance Industries had announced strategic acquisitions in two companies in the solar power space – one of which was Sterling and Wilson Renewable Energy Ltd (Read more)
Featured photograph (source: faradion.co.uk) is for representation only
