Monbat : Finalised the Majority Share Acquisition from the Tunisian Batteries Nour

Doubling the production volumes and export expansion are planned

Monbat completed the final acquisition of the 60%-share of the Tunisian Company of Batteries Nour, thus acquiring the controlling stake in the company. The EUR 10,3M total deal was primary financed by using the unutilized part of the bond issues, emitted in 2018 on BSE-Sofia and with own funds.

The acquisition is a step towards expanding the business geography of the Monbat economic group and part of the strategy for effective cost diversification. Monbat strategic plans envision developing markets share of production and distribution up to more than 40%. Galloping prices of energy sources in Europe and the volatility of the traditional European markets are considered additional factors, strengthening the positive effect from the deal. Monbat will direct production volumes toward Tunisia, reacting to the recent increased demand. The production sites in Montana and Dobrich (Start AD) will fully retain their current capacity, and it is expected that the inclusion of the new capacity will lead to improvement of the delivery time to its clients.

By doubling the production in Tunisia to 1 million lead-acid starter batteries a year, Monbat will seek to effectively mitigate the risks of volatile energy prices (electricity and natural gas). Additionally, the optimal workload in Batteries Nour and the realisation of the export potential in Europe, Middle East and Central Africa will further positively neutralise the adverse effect on Monbat from traditional business seasonality, driven by the European markets.

The Italian engineering company STC (part of the economic group Monbat), the French Dross Engineering and other leading players in the battery recycling segment are contracted to work on the deployment of a brand-new recycling facility for used lead-acid batteries. It is expected to become operational inthe second quarter of 2023. This new plant will contribute to the sustainability of the supply of the basic raw material - lead as well as will bring in place the EU standards in circular economy and environmental management. The approximate value of this investment is in the range of EUR 4,5M.