viewAltech Chemicals Ltd

Altech Chemicals advances German equity strategy for high purity alumina project

German company Altech Advanced Materials will initially raise up to €69.4 million via rights issue and external share placement.

Altech Chemicals Ltd - Altech Chemicals advances German equity strategy for high purity alumina project
The company aims to become one of the world’s leading producers of HPA

Altech Chemicals Ltd (ASX:ATC) continues to progress structuring activities in relation to its German project equity strategy with the aim of supporting the company’s high purity alumina (HPA) project.

Youbisheng Green Paper AG, the Frankfurt Stock Exchange-listed company in which Altech has acquired a 29% equity interest, has officially changed its name to Altech Advanced Materials AG (FRA:AMA1).

A new web site for this company has been established and can be accessed at www.altechadvancedmaterials.com.

Raising funds

Altech Advanced Materials (AAM) aims to raise approximately US$100 million, which if successful would position it to acquire up to a 49% interest in Altech’s HPA project.

Initially, AAM intends to secure up to €69.4 million (US$75.7 million) via a concurrent rights issue and external share placement (RIEP).

AAM has advised Altech that a draft RIEP prospectus was lodged with the German regulator (BaFin) last month, and that feedback from BaFin’s review is being incorporated into a final version of the prospectus.

Discussions with potential German lead managers to co-ordinate the RIEP are continuing and AAM has advised that it aims to complete the REIP by early December 2019.

First step in strategy

AAM’s option to acquire up to a 49% direct interest in Altech’s HPA project is an important first step in a longer-term strategy for Altech and AAM.

This involves providing their respective shareholders with exposure to both the HPA market generally, and ultimately to the growing European electric vehicle/lithium-ion battery market.

This longer-term vision is demonstrated via the recent announcement by Altech of an invitation from the state government of Saxony, Germany, proposing that it consider the construction of a second HPA plant in the state.

Roadshow well received

Altech received a positive response to an initial roadshow in Germany in September showcasing the HPA project and the investment opportunity for AAM.

The opportunity for potential investors to gain direct exposure to the HPA project via a shareholding in AAM was well received.

Altech said audiences were impressed with the US$190 million of committed senior debt funding from German government-owned KfW IPEX-Bank along with other developments:

  • Support of Euler Hermes – the German government export credit agency;
  • Award of the contract for construction of the HPA plant to SMS group of Dusseldorf, Germany; and
  • The company’s already significant German shareholder base (approximately 20%) comprising Deutsche Balaton AG, Delphi, SMS Investments and various other German and European retail shareholders.

Quick facts: Altech Chemicals Ltd

Price: 0.041 AUD

Market: ASX
Market Cap: $35.69 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Altech Chemicals Ltd named herein, including the promotion by the Company of Altech Chemicals Ltd in any Content on the Site, the Company...



Full interview: Altech Chemicals progresses HPA plant construction in...

Altech Chemicals Ltd (ASX:ATC) managing director Iggy Tan updates Proactive on HPA plant construction activities at the company’s high purity alumina (HPA) plant site in Johor, Malaysia. The majority of Stage 1 construction is nearly complete, the workshop building and OSD Tank walls have...

on 19/9/19

3 min read