Britishvolt holds last-minute meetings in bid to save business
Emergency meetings are being held at the battery start-up Britishvolt as bosses work to save the company and save plans for a £3 billion gigafactory.
The company suffered a £36.8m loss at the start of the year as a result of lockdowns, supply chain disruption, and a drop in consumer demand.
In 2022, the retailer warned that if trading conditions deteriorated further, it could run out of cash by the end of 2023.
Teneo advised the company in October as it investigated cost-cutting and restructuring options in an effort to improve its balance sheet.
As of last Friday, two separate companies were believed to have expressed interest in acquiring a majority stake.
One is led by private equity investor DeaLab Group and an Indonesian consortium, and the other by a group of existing shareholders.
A third bid, from a British consortium, has now been submitted, according to reports.
An all-staff meeting has been scheduled at Britishvolt to update all employees.
According to reports, DeaLab Group has proposed a £32 million deal with Barracuda Group for 95 percent of Britishvolt, valuing the company 96 percent less than it was a year ago.
Following the initial offer, a further £128 million investment would be made later in the year.
The existing shareholders are said to be offering £30 million for 92.5 percent of the company.
Britishvolt’s financial difficulties include its inability to obtain a £100 million Government grant promised last January when then-Business Secretary Kwasi Kwarteng praised the startup project at a ceremony in Blyth.
Months later, however, a request to withdraw £30 million from the funds was denied.
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This was with the Department for Business, Energy, and Industrial Strategy stating that the money would only be released once the firm met certain milestones, such as securing private investment and customer orders.
A Britishvolt spokesman declined to comment on the bids for the company.
Source: Business Live