Narada Power to sell 100% stake in lead recycling subsidiary

Zhejiang Narada Power Source Co., Ltd. plans to transfer its 100% equity stake in Anhui Huabo Renewable Resources Technology Co., Ltd., a wholly-owned subsidiary engaged in lead recycling, to Anhui Houji Lianeng Operation and Management Partnership Enterprise (Limited Partnership). The move is intended to optimize the Narada Power's industrial and product structure and sharpen its focus on AIDC lithium battery energy storage.

Based on the valuation and mutual agreement between the parties, the transaction is priced at RMB1.42 billion (USD205 million). Upon completion of the deal, Narada Power will retain RMB1.15 billion (USD167 million) in financial assistance to Huabo Renewable Resources and will no longer hold any equity interest in the lead recycling company.

Huabo Renewable Resources is one of China's major lead recycling enterprises, with the capacity to process around 1 million tonnes of used lead-acid batteries and lead-bearing waste annually and produce up to 590,000 tonnes of recycled lead per year.