- Altech Chemicals (ATC) has sold 25 per cent of its German subsidiary, Altech Industries Germany (AIG), to Altech Advanced Materials (AAM) for €5 million (around A$8.3 million)
- Altech says the sale will better position AIG to apply for various European Union and German manufacturing incentives
- Initially, AAM will pay Altech €250,000 (around A$415,000) once the agreements are signed
- The remaining €4.75 million (nearly A$7.9 million) will be paid in three instalments on each annual anniversary of the initial payment
- Under the sale, AIG will have the right to use Altech’s high purity alumina (HPA) manufacturing technology
- On the market this morning, Altech is up 6 per cent and trading for 5.3 cents per share
Altech Chemicals (ATC) has sold 25 per cent of its German subsidiary, Altech Industries Germany (AIG), to Altech Advanced Materials (AAM) for €5 million (around A$8.3 million).
AAM is listed on the Frankfurt Stock Exchange and will pay for its stake in AIG over three years.
Initially, AAM will pay Altech €250,000 (around A$415,000) once the agreements are signed. The remaining €4.75 million (nearly A$7.9 million) will be paid in three instalments on each annual anniversary of the initial payment.
Under the sale, AIG will have the right to use Altech’s high purity alumina (HPA) manufacturing technology.
Source: Altech
Altech Managing Director, Iggy Tan, said securing AAM as a 25 per cent shareholder of AIG will benefit all companies involved.
“AIG will now have a German shareholder (AAM) which will better position it to apply for various European Union and German manufacturing incentives – as Europe brings its supply chains closer to home to increase critical raw materials self-reliance, such as materials that are used in the manufacture of lithium-ion batteries,” he said.
“For Altech, an AIG that is co-funded and will be championed in Germany and Europe by an extremely supportive German shareholder (AAM) was an opportunity not to be missed,” he added.
On the market this morning, Altech is up 6 per cent and is trading for 5.3 cents per share at 10:24 am AEDT.