(Alliance News) - Mercia Asset Management PLC on Friday said it is expecting a cash windfall when its investee sodium-ion battery technology firm Faradion is sold for an enterprise value of GBP100 million.
The asset manager holds a 16% stake in Faradion, which will be bought by Reliance New Energy Solar, a subsidiary of India's Reliance Industries.
Based in Sheffield, Faradion specialises in sodium-ion battery technology that provides low-cost and sustainable energy storage.
Mercia expects to receive initial cash proceeds of GBP18.6 million, plus a further GBP800,000 ring-fenced for three months, as part of the deal.
Completion of the deal is expected to occur in early January 2022.
Shares in Mercia closed up 5.8% in London on Friday at 38.10 pence each.
Speaking about the acquisition, Reliance Industries Chair Mukesh Ambani said: "We welcome Faradion and its experienced team to Reliance family. This will further strengthen and build upon our ambition to create one of the most advanced and integrated New Energy ecosystem and put India at the forefront of leading battery technologies.
"The sodium-ion technology developed by Faradion provides a globally leading energy storage and battery solution which is safe, sustainable, provides high energy density and is significantly cost competitive."
Reliance also plans to invest GBP25 million as growth capital to "accelerate commercial roll out" of products at Faradion.
By Will Paige; willpaige@alliancenews.com
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Mercia Asset (MERC)