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ARA set to acquire battery recycler ZCT in all-share deal

Published 12/09/2024, 03:02 AM

LONDON - Aura Renewable Acquisitions Plc (ARA), a UK-based investment company focusing on the renewable energy sector, has announced on Monday its intention to acquire Zero Carbon Technologies Limited (ZCT), a firm specializing in battery recycling with operations planned in Europe. The acquisition is structured as an all-share transaction, with ARA set to issue new ordinary shares to ZCT shareholders, who will subsequently hold a majority stake in the enlarged ARA.

ZCT, incorporated in the UK on May 26, 2021, has been developing proprietary technology licensed from Regenerate Technology Global and Cambridge University. The company is preparing to establish two advanced recycling facilities in La Mancha province, Spain. These facilities aim to process a combined total of 75,000 tonnes of lead-acid batteries annually, with the first plant in Puertollano scheduled to begin commissioning in the first quarter of 2025 and the second in Montalbo expected to follow in the fourth quarter.

The proposed acquisition aligns with ARA's strategy to build shareholder value by investing in the global renewable energy supply chain. ARA's board has been selective in its acquisition targets, seeking businesses that can significantly contribute to the renewable energy space.

Upon completion, ARA’s entire issued share capital will be admitted to the Official List of the Financial Conduct Authority (FCA) and to trading on the London Stock Exchange (LON:LSEG)'s Main Market. ZCT is also expected to secure a minimum of £10 million of new capital at a pre-money valuation of £30 million, which will be used for capital expenditures and working capital to commission the proposed facilities.

The transaction is subject to various conditions, including regulatory approvals, satisfactory due diligence, execution of definitive agreements, and the raising of equity funds as outlined. It is important to note that the completion of the acquisition is not guaranteed and is contingent upon formal terms being agreed upon.

The FCA has suspended ARA’s listing on the Official List, and trading on the London Stock Exchange's Main Market has been halted as of this morning, pending further details on the proposed acquisition or an announcement that the acquisition will not proceed.

The announcement is based on a press release statement, and further updates on the proposed transaction will be made in due course.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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