June 1 (SeeNews) - South Africa-based energy storage products manufacturer Metair Investments said on Friday it has submitted an indicative non-binding offer to acquire Slovenian car battery producer Tovarna Akumulatorskih Baterij (TAB).
Metair is in exclusive discussions regarding the potential transaction, for which the indicative purchase consideration is 300 million euro ($350.7 million), the South African company said in a filing with the Johannesburg Stock Exchange.
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The transaction, if successfully concluded, is expected to leverage the scale of the combined group and TAB's research and development expertise to allocate increased resources to research and development directed towards new technologies such as lithium-ion batteries and electric vehicles, Metair said.
The deal is also expected to balance Metair's original equipment manufacturer's (OEM) and after-market exposure in automotive batteries and also provide a balance between the automotive and industrial segments and enhance the production capabilities and technological development of the combined group.
Moreover, the deal would enhance Metair's international brand portfolio with the TAB-owned distribution footprint in new regions, support the South African company's objective to become a consumer-focused business with the strength and reach of the TAB brands.
Metair's preliminary view is that it would seek to preserve and would consider expanding TAB's existing production sites to benefit from the competitive manufacturing cost base in the current locations of the Slovenian company.
The potential transaction is still in its early stages and is subject to a number of conditions, Metair securing the required financial and shareholder support and other conditions customary to a deal of this nature, such as regulatory and shareholder approvals, the company said.
The probable date of completion of the transaction is uncertain and, if successfully concluded, the acquisition would likely only occur during the final quarter of 2018, according to the filing.
Metair has identified TAB as a scarce strategic asset as it has a strong global presence in the industrial batteries segment and provides a platform to secure its European after-market distribution network, the South African company added.
TAB comprises after-market automotive battery manufacturing facilities in Slovenia and Macedonia, an automotive after-market battery distribution network throughout Europe as well as a global industrial battery business and an energy storage business.
($ = 0.855439 euro)