Maxwell signs stock purchase pact with SDIC Fund Management
Maxwell Technologies announced the signing of a stock purchase agreement with SDIC Fund Management. 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. Following the closing of the transaction, SDIC Fund Management's ownership stake in Maxwell's common stock is anticipated to represent approximately 19.9% of Maxwell's total issued and outstanding shares of common stock on a pre-issuance basis. The purchase price is $6.32 per share, which represents a 16% premium over today's closing price, and will bring approximately $46.6M in cash to Maxwell before transaction costs. The closing of the transaction is subject to usual and customary conditions and is subject to approval by the Committee on Foreign Investment in the United States and, if required, relevant Chinese governmental authorities. 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. Such appointment is subject to the closing of the transaction and is intended to be no later than one business day following Maxwell's 2017 Annual Meeting of Shareholders.