Reliance New Energy Solar (RNESL), a wholly owned subsidiary of Reliance Industries (RIL), signed definitive agreements to acquire 100% stake in Faradion for an enterprise value of GBP 100 million.
Reliance New Energy Solar (RNESL), a wholly owned subsidiary of Reliance Industries (RIL), entered into an agreement with Faradion and its shareholders to acquire 100% of the equity shares of Faradion through secondary transactions for a total value of GBP 94.42 million based on an enterprise value of GBP 100 million as follows: (a) 88.92% of the equity shares of Faradion for an aggregate consideration of GBP 83.97 milllion at closing which is expected in early January 2022 and (b) 11.08% of the equity shares of Faradion within 3 years from closing for an aggregate consideration of up to GBP 10.45 million.
RNESL has also agreed to subscribe to new equity shares of Faradion for an aggregate consideration of GBP 31.59 million, of which GBP 25 million is as growth capital for accelerating commercial roll out and the balance for repayment of debt and other fees.
Faradion is a global battery technology companies, based out of Sheffield and Oxford in UK. It is a private limited company incorporated on 6 August 2010 in the United Kingdom. The turnover of Faradion for FY 2020, FY 2019 and FY 2018 were GBP 197,561, GBP 81,975 and GBP 25,669 respectively.
RIL will use Faradion's state-of-the-art technology at its proposed fully integrated energy storage giga-factory as part of the Dhirubhai Ambani Green Energy Giga Complex project at Jamnagar, India. Linklaters LLP acted as the legal advisor and Ernst and Young as the accounting and tax advisor to Reliance on this transaction.
On a consolidated basis, RIL reported 46% increase in net profit to Rs 15,479 crore on 50.7% rise in net sales to Rs 1,67,611 crore in Q2 September 2021 over Q2 September 2020.
Shares of RIL rose 0.58% to Rs 2,370 on BSE. RIL is India's largest private sector company. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail, and digital services.
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