Tritium operations "stabilised" as EV players show interest in potential transaction

Tritium operations "stabilised" as EV players show interest in potential transaction

Photo: Charging units at Tritium's Brisbane testing centre. 

Receivers and managers for embattled electric vehicle (EV) fast-charger group Tritium report they have been approached by a "number of parties" in the global sale process, with the Brisbane-headquartered company now "successfully stabilised" and continuing business-as-usual operations.

The update follows the recent publication of minutes from Tritium's first meeting of creditors including claims of approximately $328.5 million for creditors to Tritium Pty Ltd, with the largest claimants being CBA Corporate Services NSW with a claimed amount of $199.5 million and the trustee for investor the St Baker Family Trust at $65 million.

Smaller creditors included ASX-listed power module supplier Rectifier Technologies (ASX: RFT), GPT Newcastle Development, Flextronics Industrial and Jiyuan Co, among others. 

Last month McGrath Nichol's Shaun Fraser, Kathy Sozou, Matthew Hutton and Jamie Harris were appointed receivers and managers to Tritium, a former unicorn based in Brisbane with a global presence that has been plagued by financial woes and mishit targets since listing on Wall Street in early 2022.

At the same time KPMG Australia’s Peter Gothard, James Dampney and Will Colwell were appointed as voluntary administrators for the NASDAQ-listed company and its Australian subsidiaries, although their appointment does not apply to Tritium's US subsidiaries or European businesses.

In their latest update, the receivers note that shortly after their appointment they commenced a sale process for Tritium with a view to identifying a suitable new owner of Tritium, noting the considerable investment to date in the development of new EV-charging products internationally.

So far they have received interest from a number of interested entities with established operations in the EV charging and electronic component manufacturing sectors, as well as potential financial sponsors. 

Information has been shared with these parties and the receivers continue to assist them as they evaluate the acquisition opportunity.

"The interest we have received is encouraging but not altogether surprising. Leveraging its platform of innovative and reliable EV-charging product suite, Tritium DCFC has established a prominent position in the out-of-home, EV fast-charging sector in the United States, Europe and in Asia," says McGrathNicol partner and receiver, Kathy Sozou.

"We are very confident the sale process will identify a new owner that can build on this success to date, and capture the opportunity to bring new Tritium products to market and grow the business, under a different capital structure."

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