Maxwell Technologies Inc. receives $46.6 equity investment from SDIC Fund Management of China

Written By: Stratton Report
April 10, 2017


On April 10, Maxwell Technologies, Inc. manufacturer of capacitive energy storage and power delivery solutions, announced a $46.6 million investment by SDIC Fund Management Co., Ltd.

After the investment, SDIC Fund Management’s ownership stake in the firm’s common stock is anticipated, by Maxwell, to represent approximately 19.9% of its total issued and outstanding shares of common stock.

The firm stressed that the purchase price was $6.32 per share, which represents a 16% premium over the current closing price.

According to Maxwell, SDIC Fund Management has significant investments in China’s energy storage industry, including top battery companies, major system integrators in the new energy market, as well as leading OEMs in the China auto and grid industries.

Maxwell stressed that the transaction is expected to close in the third quarter of 2017. As part of the Agreement, the parties have agreed that SDIC Fund Management will be subject to an 18-month lock-up period following the closing of the transaction and will have the right to appoint a representative to Maxwell’s board of directors.

Dr. Franz Fink, Maxwell’s President and Chief Executive Officer noted:

This strategic investment by SDIC Fund Management greatly strengthens our position in multiple areas. SDIC Fund Management’s investment allows us to sufficiently invest in strategic technology development as well as expand our collaboration in Asia, targeting China as one of the largest and fastest growing energy storage markets. Their expertise and resources in the new energy market in China will assist us in accelerating several of our strategic initiatives to make us a much stronger global competitor. The funding will also help foster significant partnerships with industry leaders in automotive and energy storage and positions us to capitalize on the unprecedented upside dry electrode opportunity. This is a great win for our shareholders, partners, customers, and employees.

Gao Guohua, Chairman of SDIC Fund Management remarked: “We are delighted to partner with Maxwell Technologies. We conducted comprehensive diligence, concluding that Maxwell has a world-class team with the vision and sound strategy needed to leverage their innovative dry electrode technology. We believe this technology has the potential to transform energy storage, addressing a substantial market opportunity, especially in China. We are excited about Maxwell’s future growth prospects and the value that each party brings to this new alliance.”