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Battery startup Britishvolt in buyout talks

Britishvolt sale
Image credit: Britishvolt

Battery company Britishvolt is reportedly in talks to sell a majority stake as it continues to fight to stay in business, with company filings showing that it recently issued new shares to raise £67,143.

On Monday, reports emerged that Northumberland-based Britishvolt asked for permission from investors to be replaced by a new investor in a sale.

Britishvolt said that it is “in discussions with a consortium of investors concerning the potential majority sale of the company.”

“The discussions aim to secure legally binding terms that would provide Britishvolt with the long-term sustainability and funding necessary to enable it to pursue its current plans to build a strong and viable battery cell R&D and manufacturing business in the UK.

“The two parties will provide further details at the appropriate time and have nothing further to add at this stage.”

Late on Monday, the embattled battery company filed a document showing it had sold an additional £67,143 shares to an unknown buyer.

The bulk of its recent share allotment consists of ordinary shares, which give voting rights. The remaining share issue comprised of deferred shares, which means that the holders do not receive a dividend in the event that those with ordinary shares are not paid a predetermined minimum.

UKTN has reached out to Britishvolt for clarification on the shares.

The uncertainty surrounding Britishvolt has jeopardised plans for its £3.8bn gigafactory in Northumberland. It has already had to scrap its Canada battery cell factory to focus on its European operations.

In November, Britishvolt’s creditor hired a receiver in the event that the firm goes into administration and its workers allow for a temporary pay cut.

An administration has been on the cards for Britishvolt ever since October when it was denied an advance of £30m in government funding.

Before this, the company had announced it was delaying the production of its batteries by six months as a result of increasing energy costs, while founder Orral Nadjari stood down as CEO.