Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Wellington Drive shares soar 23% on East West tie-up

Wellington Drive shares soar 23% on North American tie-up with East West Manufacturing

March 31 (BusinessDesk) - Shares in Wellington Drive Technologies soared 23 percent after the unprofitable energy efficient motor maker signed a channel partnership with US-based East West Manufacturing.

The stock climbed 3 cents to 16 cents, having shed 46 percent this year.

The Auckland-based company announced the deal with Atlanta, Georgia-based East West as an exclusive channel partner for its electronic motors in the US and Canada, it said in a statement. The alliance aims to improve customer service and reduce lead-times, Wellington Drive said.

“East West knows the North American motor manufacturing market very well, so expanding our sales and support network in North Americas through this channel partnership with East West makes perfect sense,” chief executive Greg Allen said. “We see customers in the Americas increasing their sustainability initiatives and this extension of our existing East West relationship will only serve to help customers deliver on their sustainability goals.”

The deal comes after Wellington Drive abandoned its target of breaking even in the 2014 financial year, instead seeking to lift annual revenue to between $30 million and $35 million from $27.4 million.

The company, whose annual accounts were tagged by auditor PwC over forecast cash flows, is looking to raise $5 million by selling mandatory convertible notes to existing shareholders in a pro-rata one-for-five rights issue. The offer is underwritten by SuperLife, which holds about 19.7 percent of Wellington Drive, and other institutional shareholders have committed to take up their entitlements.

Wellington Drive will seek shareholder approval at the May annual meeting to let SuperLife take up the offer, which could lift its stake in the company above the 20 percent takeover threshold.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news