Leclanché’s largest shareholder makes a US$76 million investment commitment
Swiss energy storage solution company Leclanché SA has secured CHF 75 million (US$76 million) of funding from FEFAM, Leclanché’s largest shareholder. FEFAM has also agreed to provide a conditional CHF 50 million (US$51 million) funding facility to finance acquisitions and joint ventures in e-transport and stationary grid-based storage markets. The facility shall operate on the basis of a right-of-first-offer (ROFO) for FEFAM.
In addition, Leclanché confirms that the company has signed a non-binding term sheet with a potential strategic investor to increase its overall corporate funding to between CHF 100 million (US$102 million) and CHF 125 million (US$127 million). The company anticipates that a final agreement would be executed by the fourth quarter of 2018.
CEO of Leclanché Anil Srivastava said: “This substantial investment fully funds our business plan through to 2020 when we expect to be EBITDA positive. We thank FEFAM for their continued strong investment support. This additional funding will allow us to capitalise on the exciting opportunities we see in the fast-growing markets of stationary grid-based storage and e-Transport worldwide.
“The opportunity for Leclanché is now. We have a strong order book and pipeline, which reflects our unique opportunity in these unprecedented times for the electricity and transport industries.
“We aim to use the acquisitions and joint-ventures facility to accelerate Leclanché’s technology leadership through margin accretive acquisition(s); and grow market share in Europe, Asia and North American in both the stationary grid-based storage and e-Transport businesses.
“We are in the process of completing the acquisition of a leading Energy Management Software solution from a company based in the USA. We are also in the advanced stage of completing an agreement to set up a joint venture with a market leader in India. This JV will give Leclanché a strong foothold in one of the potentially largest electric vehicles market in the world. We look forward to updating the market in the near future.
“Leclanché has never been in a better position to meet the needs of both the disruptors and the incumbents who are changing the way that we produce, distribute and consume electricity and how we transport people and products, as we move towards a clean energy future.”