Axeon goes into administration, gets acquired
Perhaps proving once again that calamity and opportunity can often be found walking together in the business world, it has been announced that Axeon Holdings has gone into administration and has been acquired. The company, which bills itself as Europe's largest independent supplier of lithium ion battery systems and who has supplied energy storage set ups for Modec, the eRUF electric Porsche project and many others, has had its assets snapped up by a company especially created for the purpose, AG Holdings LTD. The new company has backing of a hedge fund called Ironshield Capitol Management LLP and is now the proud owner of Axeon assets that include its manufacturing facility in Poland, its engineering site in Switzerland as well as its headquarters in Dundee, Scotland. It is said that while customers, creditors and employees shouldn't be affected by the changes, stock holders are likely out of luck. Press release after the break.[Source: AG Holding LTD via Green Car Congress]
PRESS RELEASE:
Axeon Announcement
AG Holding Limited is pleased to announce that it has acquired the entire business of Axeon Holdings Plc (in administration), including 100% of the share capital of the following companies (together the "Business"):
- Axeon Power Limited
- Axeon Technologies Limited
- Axeon AG
- Elektro Montage Bou GmbH (EMB)
- SAT Akkumulatoren Technik AG (SAT)
- Zaklad Montazu Ukladow Zasilajacych MAZ Sp Z.o.o. (MAZ)
The Business is one of Europe's leading independent lithium-ion battery solutions providers and is a leading green energy company. It is headquartered in Dundee where operations include manufacturing, commercial and engineering departments. The Business also has a manufacturing facility in Poland, a commercial and engineering base in Switzerland as well as a sales facility in Germany.
AG Holding is a special purpose investment company incorporated in the UK for the purpose of acquiring the Business and is backed by funds managed by Ironshield Capital Management LLP ("Ironshield").
We do not expect the acquisition to result in any disruption to customer and supplier relationships.
A statement issued by AG Holding and Ironshield:
"We have purchased these companies as we believe they have a promising and exciting future. We have an ambitious development plan for the Business as a whole and the acquisition allows us to provide the Business with the necessary financial resources which will, together with management and staff's expertise, assist it to consolidate its leadership position in Europe and continue its expansion for the benefit of its clients."
Note on the administration
This acquisition follows the appointment of Malcolm Shierson and David Dunckley of Grant Thornton as Joint Administrators of Axeon Holdings plc earlier today.
The Administrators of Axeon Holdings plc (in Administration) will contact its creditors separately and deal with the outcome of the administration process and pre-administration debts. Creditors of Axeon Holdings plc (in Administration) and of its subsidiaries should be unaffected by this process.
Note on Ironshield
Ironshield Capital Management LLP is a European special situations fund manager based in London. Ironshield has successfully invested in a number of companies of various sizes and capital structures, helping them to execute their business plans including growth, acquisition and financing.
Reader Comments (Page 1 of 1)
Tim 12:52PM (4/22/2009)
What? No taxpayer funded bailout? That's insain! Damn capitalists....
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Stan Wellaway 3:32PM (4/22/2009)
Far from merely being "out of luck", shareholders have been well and truly shafted - losing 100% of their investment in what is a major scandal. One Scottish authority has lost £800k ($1120k) of taxpayers' investment in this deal, through no fault of their own.
Ironshield were 15% owners of the shares and instead of renegotiating a debt arrangement, opted to call in an administrator of their own choice, who promptly sold the company on to AG, who, surprise surprise, were set up specially to do this deal. The whole thing was over in a few hours, with no evident attempt to look around for other bidders. According to the new owners the company prospects are wonderful - which of course they knew when they opted not to extend the existing loan arrangement. So a shareholder who held 15% and declared the company not worth extending credit to, now owns 100% of it and says it's wonderful. The other shareholders who owned 85% now own nothing. This is the unacceptable face of capitalism giving the finger to those who tried to ban such activities.
I like the company, and I like its products - but this deal stinks, and many are demanding a fraud investigation. The share price rocketed in the days beforehand, which to many of us suggests some underhand manipulation to lure in investors who were then effectively robbed!.
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Marcus 10:11AM (4/28/2009)
Hello,
Good comments above. I don't really understand this whold process. Is it possible these shares might become listed again in the future? Is it possible to raise this with the a LSE, financial ombudsman service, FSA...?
I only had a very small holdings, relatively, but none the less..
Any comments appreciated.
Thanks.
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Grumpster 4:21AM (5/15/2009)
For anyone that wants to redress the situation there is a forum for investors that have lost out. if enough people make enough noise something might be done.
http://axeon.myfastforum.org/
Reply