Mercia powers up with profit as battery firm sold in £100m deal

Henleu-in-Arden-based Mercia Asset Management has sold its stake in a Sheffield-based provider of batter technology in a deal worth £100m.

Mercia has offloaded Faradion to Reliance New Energy Solar, based in India. The deal will see Mercia receive around £19.5m for its 16.4% share, resulting in a profit of £5.7m.

Mercia made its first direct investment in Faradion in January 2017 and Mercia’s managed funds have held equity stakes in Faradion since its inception in 2010.

Dr Mark Payton, CEO of 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% 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. This ability to provide Complete Connected Capital alongside hands-on support to the most exciting regional businesses, is what makes Mercia an increasingly attractive investment partner for entrepreneurs.

“I would also like to congratulate Chris Wright, James Quinn and the whole Faradion team. Securing a sale to Reliance, one of India’s leading companies, is testament to the business they have created and the worldwide potential of innovation that exists in the UK regions. We wish them every success under their new ownership and are happy to see the significant ongoing investment announced by Reliance in Faradion.”