Monbat acquires two lithium-ion batteries producers in Germany



Leading lead acid batteries producer in Bulgaria Monbat (5MB BU) acquired two lithium-ion batteries companies in Germany, according to a regulatory announcement by the Company.

Lithium-ion batteries – the new market for Monbat

Monbat acquired 100% of GAIA Akkumulatorenwerke GmbH and EAS Germany GmbH (a JV between GAIA and Enersys/Hawker). It plans to merge them into EAS Batteries GmbH based in Nordhausen, Germany, and invest EUR 5m over the next two years in new equipment and workforce expansion.

The acquisition of GAIA and EAS follows Monbat’s plan to expand operations outside its traditional lead acid battery operations. The Company plans to capitalized on GAIA and EAS niche expertize in the large scale lithium batteries for the aerospace, defense, marine and public transportation industries.

The deal allows Monbat to tap on a new market in the high-power battery systems solutions, based on safe and proven Lithium Iron Phosphate cell chemistry. No immediate details on the acquisition price.

Shareholders approved BGN 0.28 DPS – 2.4% yield

At Monbat AGM, held June 26th, shareholders approved a BGN 0.28 DPS, yielding 2.4% at current market quotes.

They also approved a special Board of Directors’ derogation to issue BGN 60m convertible bond with the sole aim of acquiring noncurrent assets and shares in companies with the same or similar activity. The bond is expected to be mid-term /5 to 7 years/, according to Chairman and CEO Atanas Bobokov. Bobokov also said that future dividend payout will depend on the bond issuance.

Monbat posts 27% y/y rise in Jan-May’17 top and bottom line

Monbat booked 27% y/y rise in group sales in Jan-May 2017 while EBT is up 28% y/y, according to preliminary monthly results published by the Company. Group sales advanced above expectations by 26.9% y/y to BGN 121m for the Jan-May 2017 period. EBITDA added 23.2% y/y to BGN 23.2m yielding a 19.11% margin for the five month period, also above our expectations. Earnings before taxes advanced 28% y/y to BGN 15.9m yielding a 13.2% margin.

Monbat shares’ performance

Monbat shares’ performance

Check ELANA Trading equity research reports