Britishvolt valued at 96% less as it considers rescue deal
As Britishvolt looks to sell a majority stake to investors, it’s been revealed that an Indonesia-linked investment firm could be looking at the rescue deal worth £160m.
DeaLab Group, a UK-based private equity group ran by by Reza Eko Hendranto, an Indonesian banker is said to be in talks with the battery manufacturer.
Britishvolt had been looking to raise £200m when it nearly collapsed in November as its funds ran dry. Yesterday, it was reported that it was in talks with a consortium of investors to secure the “long-term sustainability and funding necessary” to continue with its gigafactory plans at Hams Hall and Blyth.
The Guardian has said terms of the rescue deal would see investors pay an initial £30m for 95% of the business with a further £128m to follow. It would leave existing shareholders with 5% of the business, worth less than £2m.
Shareholders will discuss the deal on Friday, where it needs 75% approval to go ahead. This would however value Britishvolt at £32m, a 96% difference from February 2021 when it was valued at just under £800m.
Last February, the Government had made a £100m commitment to bring forward a £1.7bn sale and leaseback of the Britishvolt property in Blyth, Northumberland, in January 2021.
However, the government has since withdrawn this offer since it found it would be used for day-to-day operational costs.
