November 13 (Renewables Now) - South African vanadium producer Bushveld Minerals Ltd (LON:BMN) plans to acquire Enerox GmbH, an Austrian firm that is active in the development, production and distribution of vanadium redox flow batteries.
Bushveld Minerals has signed a term sheet that outlines the main terms of a deal that will see a consortium led by its 84%-owned unit Bushveld Energy take over Enerox from CellCube Energy Storage Systems Inc. The proposed three-part transaction will be executed on a debt free basis at a total sum of EUR 11 million (USD 12.1m). The agreement will also include EUR 1.5 million in working capital financing for Enerox.
Bushveld Minerals intends to own a significant minority interest in the buyer consortium, it said, adding that it anticipates contributing not more than 50% of the transaction.
The South African company wants to buy Wiener Neudorf-based Enerox as part of its strategy of creating a vanadium redox flow batteries investment platform through which it would invest in original equipment manufacturers (OEMs) with attractive upside potential.
Under a separate deal between the two parties, Bushveld Minerals will get a right of first refusal to supply vanadium products to Enerox on the same material terms as any other supplier.
(EUR 1.0 = USD 1.101)