Sale of Faradion Limited
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RNS |
31 December 2021 |
Mercia Asset Management PLC
("Mercia", the "Group" or the "Company")
Sale of Faradion Limited
Mercia Asset Management PLC (AIM: MERC), the proactive, regionally focused specialist asset manager with c.£948million of assets under management, is pleased to announce that contracts have been exchanged for the sale of Faradion Limited ("Faradion") for a total enterprise value of £100.0million to Reliance New Energy Solar Limited, a wholly owned subsidiary of India-based Reliance Industries Limited ("Reliance"), the multinational conglomerate.
Completion of the sale of Faradion will occur once receipt of the consideration proceeds is confirmed by all vendors. This is expected to occur in early January 2022, at which point a further announcement will then be made.
Based in Sheffield, Faradion is a world leader in sodium-ion battery technology that provides low-cost, high-performance and sustainable energy storage solutions.
Mercia holds a 16.4% fully diluted direct holding in Faradion and is entitled to receive initial unrestricted cash proceeds of 18.6million, plus a further £0.8million ring-fenced for three months.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon publication of this announcement, this inside information is now considered to be in the public domain.
-Ends-
For further information, please contact:
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Mercia Asset Management PLC Mark Payton, Chief Executive Officer Martin Glanfield, Chief Financial Officer
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+44 (0)330 223 1430
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Canaccord Genuity Limited (NOMAD and Joint Broker) |
+44 (0)20 7523 8000 |
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Simon Bridges, Andrew Potts |
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Singer Capital Markets (Joint Broker) |
+44 (0)20 7496 3000 |
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Harry Gooden, James Moat |
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FTI Consulting |
+44 (0)20 3727 1051 |
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Tom Blackwell, Louisa Feltes, Immy Ransom |
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mercia@fticonsulting.com |
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About Mercia Asset Management PLC
Mercia is a proactive, specialist asset manager focused on supporting regional SMEs to achieve their growth aspirations. Mercia provides capital across its four asset classes of venture, private equity, debt and proprietary capital: the Group's 'Complete Connected Capital'. The Group initially nurtures businesses via its third-party funds under management, then over time Mercia can provide further funding to the most promising companies, by deploying direct investment follow-on capital from its own balance sheet.
The Group has a strong UK footprint through its regional offices, 19 university partnerships and extensive personal networks, providing it with access to high-quality deal flow. Mercia currently has c.£948million of assets under management and, since its IPO in December 2014, has invested c.£116million gross into its direct investment portfolio.
Mercia Asset Management PLC is quoted on AIM with the EPIC "MERC".
The following disclosure is made in accordance with Schedule 4 of the AIM Rules for Companies. As at 30 September 2021, the book value of the Company's investment in Faradion was £12.9million. The profits attributable to Mercia's investment in Faradion for the year ended 31 March 2021 was an unrealised fair value gain of £1.2million. The sale proceeds will be reinvested in supporting and expanding the Company's direct investment portfolio and for general corporate purposes.
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