Altech fulfills all precedent conditions towards the sale of 49% stake of Altech’s HPA project to AAM

Altech Chemicals has posted an update on its German project equity strategy announced on 18 July 2019.  The strategy involves the acquisition of 29% of the shares of Youbisheng Green Paper AG, which will be re-named Altech Advanced Materials AG (AAM). The strategy also covers sale of 49% stake of Altech’s high purity alumina (HPA) project to AAM for US$100m. The company has confirmed that all precedent conditions have been fulfilled towards the strategy and Altech will now proceed to complete both the transactions.

Altech will make a cash payment of €500,000 to complete acquisition of 29% of the shares of AAM and issue €1,000,000 of Altech fully paid ordinary shares to the vendor (Deutsche Balaton AG).  The balance €1,229,000 cash consideration is to be paid on 1 March 2020.

AAM will make a non-refundable cash payment of €500,000 to Altech to acquire up to a 49% interest in the Company’s HPA project.

After the fulfilment of the precedent conditions, Altech’s managing director Mr Iggy Tan and alternate non-executive director Mr Uwe Ahrens have been appointed to the management board of AAM. Shareholders have approved the change of company name to Altech Advanced Materials AG (AAM) and a capital increase of up to €63,102,080.

Commenting on the development Altech managing director Iggy Tan said “it is pleasing to have documented both transactions of our German equity strategy in a very short time-frame, and to have satisfied all of the conditions precedent items within four weeks of signing the agreements.

The next step following transaction completion is for AAM to appointment a German bank and brokers to manage a Europe marketing campaign for its pre-approved capital raise.”