Amphibious boat maker Sealegs is mulling a private equity investor's offer of $6.2 million to fund its development into a global brand.
The offer, announced to the stock exchange this morning, comes from Mauritius-based Avenport Investment Corporation, already a 20 percent owner of Sealegs.
Sealegs CEO David McKee Wright said Sealegs had proven its product worked and had a significant worldwide market.
"An investment into international expansion and the creation of a global brand makes good strategic sense," he said.
"Avenport would bring an international focus to the company and the capital from the placement would fund marketing, sales initiatives and the development of new models.''
The plan involves Sealegs issuing 31 million new shares to Avenport for 20c a share, taking Avenport's stake up to 40 percent.
The increased shareholding over 20 percent brings the Takeovers Code into play and requires shareholder approval. McKee Wright said the deal would be put before shareholders for a vote at the annual meeting on July 30.
Avenport built up its stake through an issue of 14 million new shares for 20c a share last month, and the off market purchase of 4.5m shares from an Australian investor this month for 14c a share.
Sealegs shares were unchanged on the anouncement, but rose 3c last week to close at 23c on Friday, giving the company a market value of $21.4m.
Last month Sealegs reported a profit of $407,000 for the year to March - its first year in the black - on revenue of $11.4m.
- © Fairfax NZ News