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Highlights
- Altech Batteries has secured a binding agreement to acquire AAM’s stake in CERENERGY® and Silumina Anodes™ projects.
- The acquisitions, valued at AU$23.3 million, are expected to accelerate the development of Altech's battery technologies..
- Post-acquisition, Altech will hold 75% of CERENERGY® and 100% of Silumina Anodes™.
- Fraunhofer will retain its 25% joint venture stake in the CERENERGY® Project.
Altech Batteries Limited (ASX:ATC, FRA:A3Y) is acquiring significant stakes in key energy projects through a binding agreement with Altech Advanced Materials AG (AAM). This acquisition will provide Altech with increased control over its cutting-edge CERENERGY® and Silumina Anodes™ projects. Upon completion, the company will become the majority stakeholder in both projects, further solidifying its position in the rapidly expanding energy storage sector.
Following this acquisition, Altech will increase its stake in CERENERGY® by an additional 18.75% and will gain full control of Silumina Anodes™ by acquiring the remaining 25% stake. The Fraunhofer Institute will retain its 25% joint venture stake in CERENERGY®.
As part of the transaction, ATC will issue approximately 532 million shares to AAM, bringing AAM’s ownership in ATC to 21%. This AU$23.3 million deal is expected to accelerate the development and commercialisation of ATC’s high-value battery and energy storage projects.
The transaction is still subject to shareholder approvals at the general meetings of the parties involved, along with other regulatory conditions.
Valuation of the Transaction
The current market cap of AAM is AU$38.7 million on the Frankfurt Stock Exchange (FRA), while the consideration offered for its assets amounts to AU$23.3 million.
The Definitive Feasibility Study (DFS) for the CERENERGY® Project estimates an NPV of AU$281 million and AAM’s 18.75% stake is worth AU$52 million at full financing. After applying a 0.23 NAV discount to account for financing risk, the adjusted valuation stands at AU$12 million.
Meanwhile, the NPV indicated by Silumina Anodes™ DFS stands at AU$1.14 billion, with AAM’s 25% stake valued at AU$285 million. After applying the 0.23 NAV discount, the adjusted valuation comes to AU$65 million.
To summarise, the risk-adjusted value of the projects is AU$77 million, significantly higher than the AU$23.3 million value of the acquisition.
Initially, AAM acquired a 25% stake in both projects from ATC for AU$8 million and contributed further AU$10.8 million to advance the projects. This brought AAM’s total investment to AU$18.8 million, compared to the AU$23.3 million acquisition offer.
Strategic Rationale of the Acquisition
The acquisition gives Altech full autonomy over investment and operational decisions, accelerating project execution and reducing governance complexity. Consolidating ownership of the Silumina Anodes™ and CERENERGY® projects strengthens the company’s position in negotiations with strategic partners, customers, and financiers.
ATC Shares Surge
ATC shares were trading 2.22% higher at AU$0.046 per share at the time of writing on 28 February 2025.
