Sealegs signals global expansion plans with new name

Tuesday 20th December 2016

Auckland-based Sealegs, which manufactures and sells amphibious boats and systems in New Zealand and overseas, today announced plans to expand globally and to change its name.

The company – which intends to rebrand as Future Mobility Solutions as soon as practicable – said it was aiming to expand into new markets and new products, including drones and sea structures. It also announced plans to buy stakes in two different companies, one in France and one in South Africa.

The company said it plans to buy a 70 percent stake in SAS Sillinger from Groupe Marck for 2.1 million euros, 1.5 million euros in cash and 600,000 euros through the issuance of new Sealegs shares to Groupe Marck at 25 NZ cents a share. The NZX-listed stock rose 8.7 percent to 10 cents.

The cash consideration will come from cash resources and the proceeds of a new share placement, it said in a statement. Sillinger is headquartered in France and manufactures and sells a wide range of crafts, specializing in the military and defence sectors.

Sealegs also said it has entered a conditional agreement to buy a 50.1 percent stake in Gemini Marine, also through the issue of new shares to the owners of Gemini at 25 cents a share. Based in Cape Town, South Africa, Gemini designs and manufactures a wide range of rigid-inflatable boats and inflatable boats for rescue, military and patrol entities in different countries.

Both deals are subject to a number of conditions including due diligence, regulatory and legal approvals, the agreement of the final sales and purchase contract and shareholders’ agreement. It will also seek shareholder approval for the issue of further new shares, also at a price of 25 cents a share, to provide management incentives.

Subject to those conditions, it expects the two deals to be finalised by the end of the financial year in March. It also said it plans to list on an additional stock exchange in Europe within the next two years.

In the six months to the end of September Sealegs invoiced for 44 boats. It now expects total boat production to rise to more than 400 units per year and said it will have operations based in Auckland, Cape Town and Paris.

BusinessDesk.co.nz

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