Oakridge Global Energy Solutions Inks LOI for Controlling Stake in LeclanchA(c).
12 December 2014 - US-based solid-state battery systems specialist Oakridge Global Energy Solutions, Inc. (OTC: OGES) has inked a binding letter of intent to acquire controlling interest in Switzerland-based battery manufacturer LeclanchA(c) S.A. in a deal worth around USD 45m, the company said.
Under the terms of the agreement, Oakridge will acquire from Precept Fund Management SPC 11m shares of LeclanchA(c).
Traded on the SIX Swiss Exchange, the value of the transaction was estimated at approximately USD 45m on December 5, 2014, the date when the letter of intent was executed, based solely on the purchase price of LeclanchA(c)'s shares in the letter of intent rather than the higher quoted price for such shares.
Founded in 1909 in Yverdon-les-Bains, Switzerland, LeclanchA(c) S.A. is the company that originally invented the lead acid battery used throughout the world for starter motor batteries, and one of the oldest continuously operating names in the global battery business and is believed to be the largest battery manufacturer in Europe.
Oakridge said that the deal will allow it to more directly capitalise on an existing strategic alliance between the two companies for Lithium ion technology interchange.
It will also represent an important strategic industry investment for Oakridge in LeclanchA(c) and its new Lithium Titanate energy storage technology and ceramic safety separator technology, with a view to furthering Oakridge's execution of its previously announced industry consolidation "vertical investment" strategy, the company said.
Target: LeclanchA(c) S.A
Buyer: Oakridge Global Energy Solutions, Inc
Deal size in USD: 45m
Type: Corporate acquisition
Buyer advisor: , ,