TLDR
- Flux Power rejects Solidion’s takeover bid after reviewing the proposal and value.
- The board says Solidion’s offer undervalues Flux Power and its long-term outlook.
- Flux Power plans to focus on lower costs, new growth and a path to profitability.
- The company expands OEM ties while pursuing new white-label growth opportunities.
- Solidion’s proposal remains unsupported as Flux Power reviews financing options.
Solidion Technology stock fell sharply Friday after Flux Power rejected the company’s unsolicited takeover proposal. STI dropped 11.12% to $5.47 during midday trading and moved near its intraday low. The rejection increased pressure as the market assessed Solidion’s failed attempt to acquire the energy storage company.
Flux Power Board Rejects Solidion Takeover Proposal
Flux Power’s board unanimously rejected Solidion Technology’s unsolicited and non-binding acquisition proposal. Solidion announced the proposed transaction on September 30, targeting the lithium-ion energy storage company. However, Flux Power determined that the offer did not provide sufficient value for its shareholders.
The board reviewed the proposal with its legal advisers before reaching its decision. Flux Power said Solidion’s proposal substantially undervalued the company and its longer-term business potential. Therefore, the board decided that accepting the proposed transaction would not serve the company’s interests.
Solidion develops battery materials and technologies for electric mobility and energy storage applications. Meanwhile, Flux Power supplies lithium-ion battery systems for industrial vehicles and other commercial equipment. The proposed deal would have combined businesses operating across different parts of the battery technology market.
Flux Power Focuses on Costs and Growth
Flux Power instead plans to continue its strategy aimed at improving efficiency and reaching profitability. The company has reduced product costs, operating expenses, and internal spending under its newer management team. It has also strengthened its supply chain and expanded relationships with original equipment manufacturers.
During fiscal 2026’s fourth quarter, Flux Power reduced operating expenses by 33% from the previous year. The company also secured certification with another major OEM, expanding its addressable electric material-handling market. Flux Power launched SkyEMS 3.0, which uses artificial intelligence for fleet energy management.
Flux Power has also started pursuing additional growth through its S series battery platform. The company plans to offer white-label solutions to new manufacturers and dealership networks. Furthermore, Flux Power entered the robotics market through cooperation with a large global technology company.
Rejected Bid Leaves Solidion Without Board Support
Flux Power’s rejection blocks Solidion from securing board support for its proposed transaction. The decision also shifts attention toward whether Solidion changes the proposal or abandons the acquisition effort. No revised offer formed part of Flux Power’s announcement.
Flux Power expects improving demand as broader economic pressures ease across its markets. Management believes lithium-ion technology can capture a larger share of industrial battery demand over time. Therefore, the company continues building capacity and commercial relationships around that expected shift.
The board is also reviewing possible financing options and strategic partnerships to support Flux Power’s operating plans. Those efforts could provide additional financial flexibility as the company pursues growth and profitability. For Solidion, the rejected proposal leaves the proposed acquisition without support from Flux Power’s board.
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