Heidelberg (pta027/27.02.2020/17:45) - Highlights
* Posting of Board Member Uwe Ahrens to Germany
* Support for impending Altech Advanced Materials AG ~ EUR 69.4m capital raise
* Increased engagement with bourgeoning European lithium-ion battery sector
Altech Advanced Materials AG ("AAM"; FRA: AMA1) is pleased to provide information about various European based initiatives of Altech Chemicals Limited, Australia, ("Altech Chemicals") and AAM that have recently commenced to support the objective of closing the balance of finance for the Malaysian high purity alumina (HPA) project. A key remaining step includes the intended capital raise by AAM of ~ EUR 69.4 million and the exercise of its option to acquire up to a 49% direct interest in Altech Chemicals HPA project for USD 100 million.
Mr Uwe Ahrens, who is a member of the AAM management board, alternate director for Altech Chemicals and also a senior member of the management team of the Melewar group, a major shareholder of Altech Chemicals, has been posted to AAM and will be based in Germany. Mr Ahrens is a German national who has resided in Malaysia for in excess of 20-years and has retained a very strong business network in Germany.
During his posting to Germany Mr Ahrens will:
* Work closely with the other members of the AAM management board and its appointed Placement Agent (a Swiss International Investment Bank), to promote AAM's capital raise to potential institutional investors in one-to-one meetings and in group presentations (refer Corporate News of 4 February 2020);
* Increase engagement with emerging participants in the bourgeoning European lithium-ion battery sector and promote Altech Chemicals HPA project, the Company's 99.99% (4N) HPA product and the partnership/investment opportunity. An objective is to link with one or more European based 4N HPA end-users that appreciate the advantage of a current commitment to accepting future volumes of the Company's 4N HPA product at pre-agreed or other transparent pricing, and/or directly partnering with the Company for the development of the HPA project;
* Liaise with various research bodies such as the internationally renowned Fraunhofer Society for the advancement of applied research, about HPA product attributes and various test work, and identify and capture any opportunities for the HPA Project presented by the European Union's Battery 2030 Roadmap initiative - for details view: https://battery2030.eu/roadmap/.
Altech Chemicals and AAM managing director, Mr Iggy Tan said "from our interactions with attendees at various European battery conferences - including the Advanced Automotive Battery Conference, Wiesbaden, Germany - and from recent meetings with European banks, funds and other professional investors, it is clearly apparent that there exists a new sense of urgency in Europe, and particularly in Germany, to accelerate the development of a European based lithium-ion battery manufacturing sector as a cornerstone to support a faster than previously anticipated transition to electric vehicle production.
For Altech Chemicals, AAM and our proposed 4N HPA product, the current momentum in Europe presents a unique window of opportunity which we must endeavour to capitalise on. The secondment of Mr Ahrens to Germany, will I believe, provide us with the additional required "boots-on-ground" to directly represent and advocate for Altech Chemicals, AAM and our 4N HPA, whilst at the same time providing assistance to AAM for its impending capital raise."
The Management Board
About Altech Advanced Materials AG
Altech Advanced Materials AG ("AAM") currently plans to acquire up to 49% in Altech Chemicals Australia PTY LTD ("Altech Australia") for up to USD 100 million from Altech. AAM is currently implementing its capital raising strategy to be able to fund the investment.
Altech Australia is currently building a high-purity alumina (99.99%, 4N HPA) production facility for 4,500 tons p.a. in Malaysia and also has its own deposit for the mining of the main raw material kaolin. 4N HPA is needed for the production of LED lights as well as a separator for lithium-ion batteries, e.g. needed for electric vehicles and smartphones. Market demand for 4N HPA is expected to grow with a CAGR of 30% p.a. until 2028. The process patented by Altech Australia allows the production of HPA as cost leader, as the HPA can be obtained directly from kaolin. This allows production without the use of energy-intensive aluminium. The production volume for the first 10 years is secured by an off-take agreement with Mitsubishi Australia and the production capacity and quality is guaranteed by the German plant manufacturer, SMS group GmbH, Dusseldorf, which has also agreed to contribute USD 15 million in equity to the Altech HPA project.
The project has an investment volume of approximately USD 390 million, of which KfW-IPEX Bank has already committed USD 190 million under certain conditions and of which USD 10 million is assumed as equity investment from SMS group GmbH. Altech Chemicals Limited is in talks with Macquarie Bank on the provision of USD 90 million in mezzanine capital. The remaining USD 100 million is to be made available by AAM.(end)
|emitter:||Altech Advanced Materials AG|
Ziegelhäuser Landstraße 3
|contact person:||Hansjörg Plaggemars|
|phone:||+49 6221 64924-0|
|stock exchanges:||regulated market in Frankfurt; free market in Dusseldorf; open market in Berlin|
|ISIN(s):||DE000A2BPG14 (share), DE000A2LQUJ6 (share)|