Altech Batteries Ltd (ASX:ATC), a prominent player in the battery technology sector, has completed the sale of a 25% share in its German subsidiary, Altech Industries Germany GmbH (AIG (NYSE:AIG)), to Altech Advanced Materials AG (AAM).
The company has received the final instalment of deferred consideration, amounting to €1,583,333.
Deal concluded
The trajectory of the transaction commenced back on December 23, 2020, when Altech disclosed the terms of the deal.
Valued at a total of €5 million, the sale was structured to include an initial cash consideration of €250,000, paid at the signing of the share sale and purchase agreement.
The remaining €4.75 million was to be fulfilled through deferred consideration, partitioned into three equal instalments of €1.583 million.
With the receipt of this final instalment, Altech's strategic divestment of a quarter stake in AIG comes to a close.
Altech retains a significant majority stake in AIG, holding 75% ownership.
Managing director Iggy Tan said: “We are very pleased with the support of AAM in relation to the acquisition of the 25% of AIG, with AIG being the holder of Altech’s Silumina AnodesTM battery materials project.
Work continues on anode pilot plant
“Altech continues with the construction of the Silumina Anodes™️ pilot plant on Altech’s land in Saxony, Germany, and has recently announced the definitive feasibility study for the full-scale 8,000 tonnes per annum plant, which includes an impressive NPV(10) of €684 million and a payback period of 2.4 years.
“Altech intends to produce 120 kilograms per day of the Silumina Anodes™️ product from the pilot plant, which will then be used to assist in securing an offtake agreement with an end user.
“Altech already has Non-Disclosure Agreements in place with some of the world’s biggest automobile manufacturers.
“The receipt of the deferred consideration for €1,583,333 is well received and will be used for advancing Altech’s Silumina Anodes™️ battery materials project as well as the CERENERGY® sodium-chloride solid-state battery project.”