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

 

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Transport: Boards Of Inquiry For Auckland Roading Projects

Boards of Inquiry have been appointed to decide on two significant Auckland roading projects in a move which will get a decision by the end of the year, Environment Minister Dr Nick Smith and Conservation Minister Maggie Barry announced today. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news