Construction equipment manufacturer JCB is looking to the future with an investment in energy storage and clean fuel company ITM Power.
JCB Research and Valebond Consultants, a company wholly owned by JCB heir Jo Bamford, have purchased more than 16 million new shares in the company. This represents approximately 9.1% of its enlarged share capital and makes the JBC businesses, in aggregate, ITM Power’s largest shareholder.
The investors agreed to pay 30 pence per share, or a total of £4.856 million, which represents a 15.4% premium to the closing mid-market price of ITM Power’s ordinary shares prior to the deal.
As part of the agreement, JCB Research also has the right to appoint a member to the board of ITM Power.
ITM Power said that it would use the proceeds of the share sale as additional working capital to help scale up the business.
UK-based ITM Power operates out of two premises in Sheffield, and also has offices in Germany, France, the United States and Canada. It specialises in the manufacture of integrated hydrogen energy systems to enhance the utilisation of renewable energy that would otherwise be wasted.
Commenting on its investment in the company, Lord Bamford, chairman of JCB Research, said: We are excited by the prospects of hydrogen technology and our investment in ITM Power.
We expect to be an actively supportive shareholder in ITM Power and look forward to working with the board and management team and to sharing some of our expertise in manufacturing and engineering.