- CBAK Energy Technology, Inc. (NASDAQ:CBAT) ("CBAK Energy," or the "Company"), a leading lithium-ion battery manufacturer and electric energy solution provider in China, today announced that its wholly-owned subsidiary, Nanjing CBAK New Energy Technology Co., Ltd ("Nanjing CBAK"), has reached an agreement with Shenzhen BAK Battery Co., Ltd. ("BAK Battery") to acquire, from BAK Battery, a 5% stake in Shenzhen BAK Power Battery Co., Ltd. ("BAK Power"), an unrelated, well-respected power battery R&D and manufacturing company.
Under the terms of the agreement, Nanjing CBAK will acquire a 5% stake in BAK Power for RMB260 million (or approximately $35.57 million), based on a mutually agreed-upon fair market valuation of RMB5.2 billion (or approximately $710 million). As one of China's leading companies in the development of model 46800 batteries, BAK Power has agreed to supply its battery products to CBAK Energy, creating synergy with models 46115 and 46157 batteries developed by CBAK Energy and reinforcing product supply while establishing non-compete agreements for certain key customers.
Founded in 2001, BAK Power, as one of the foremost lithium battery manufacturers in China, is dedicated to developing a global new energy business. Leveraging its core technology of self-developed lithium batteries, BAK Power focuses on promoting efficient power supply for electric vehicles and providing stable energy storage system products. BAK Power is recognized for its research and development of power batteries and advancing cylindrical lithium battery technology. BAK Power has consistently remained at the forefront of the industry due to its forward-looking approach and continuous innovation.
Existing main shareholders of BAK Power include renowned Chinese financial institutions, including: China Cinda Asset Management Co., Ltd., one of China's largest asset management companies; Shenzhen Capital Group Co., Ltd., a top-tier Chinese private equity firm; and CMS Capital Co., Ltd., one of the largest broker-owned investment firms in China.
Yunfei Li, Chairman and Chief Executive Officer of CBAK Energy, stated, "We're thrilled to be bringing CBAK Energy and BAK Power together. This strategic acquisition of a minority interest in BAK Power will enable us to leverage our collective expertise and resources to drive innovation and deliver advanced products to our customers, enhancing our leading position in the power battery industry and further strengthening our capability in cylindrical lithium battery production and electric energy solutions."