Britishvolt, the embattled electric vehicle battery startup, is likely to be valued at less than a tenth of what it was just a year ago if it secures a rescue deal with Indonesian investors, according to a report.
The company, which has started building a £3.8bn 'gigafactory' near Blythe in Northumberland but struggled with its finances, said yesterday that it is in talks with a consortium of investors about selling a stake.
Leading the talks is DeaLab Group Limited, a London-based alternative asset management firm based in London, the FT reported today. DeaLab, whose accounts are overdue according to Companies House, has links to Indonesia, the newspaper's sources said, with director Reza Eko Hendrato based in Jakarta.
The talks are reportedly valuing Britishvolt at £32mln, which would all-but wipe out investments made by backers including Glencore PLC (LSE:GLEN) and Ashtead Group PLC (LSE:AHT), with the company valued at £774mln last February.
On Monday the FT said the new investor will inject an initial £30mln with another £128mln later in the year, enabling it to continue operating and trying to win orders.
Shareholders in Britishvolt will need to agree on the deal before Friday, the FT reported, with 75% approval needed and no other offers on the table.