Solidion Technology Holds Firm on Below-Market Flux Power Bid
Solidion Technology is maintaining its unsolicited offer for Flux Power despite board rejection, citing dilution risks and default concerns.
Solidion Technology, Inc. (NASDAQ: STI) is standing by its below-market acquisition offer for Flux Power Holdings (NASDAQ: FLUX) after Flux Power's board formally rejected the bid, according to a statement released by the Dallas-based advanced battery company.
Solidion said it sees no justification for raising its proposal, pointing to what it characterized as serious financial headwinds at Flux Power, including highly dilutive financing requirements, unresolved regulatory issues, and an elevated risk of debt default. The company argued those factors weigh materially on Flux Power's intrinsic value.
Read more Sovereign Wealth Funds Eye $5T US Investment at 2026 I20 Summit →
The move reflects a broader pattern in the energy storage sector, where acquirers have grown more aggressive in pressing below-market offers against targets facing capital constraints. Flux Power, which manufactures lithium iron phosphate battery systems for industrial equipment, has not publicly detailed the specific terms of Solidion's offer or the grounds for its rejection beyond a board-level determination that the bid undervalued the company.
Solidion's decision to publicly reaffirm its stance rather than withdraw or revise signals it may be pursuing a pressure campaign aimed directly at Flux Power shareholders, a tactic sometimes used to force a negotiating opening when a target board refuses initial terms. Whether institutional shareholders at Flux Power will push back on management's rejection remains to be seen.
Continue reading at All Financial Services & Investing.
