Perth, May 10, 2006 AEST (ABN Newswire) - Australia's faster growing scooter business is to be acquired by listed Optima Corporation Limited (ASX: OPC) under a move by the current surfwear specialist to add another core business to the group.
Optima announced today the proposed A$4.5 million purchase of the wholesale operations of Western Australian-based scooter company, Vmoto Motorcycles Australia, in a move that complements its existing surfwear business which has a major focus in retail markets in the United States.
"Vmoto is the fastest growing motorcycle brand in Australia since the release of its first motorcycle only three years ago. It is forecast to sell 3,500 units for the year ended 30 June 2006, turning over an estimated $6 million," Optima Managing Director, Mr Blair Sergeant, said today.
"Further, as petrol prices continue to rise, scooters are becoming a very attractive alternative to motor vehicles to a growing number of people," Mr Sergeant said.
The transaction involves the issue of 60 million fully-paid Optima shares at a deemed issue price of 7.5c each, under which Optima acquires Capital Pacific Pty Ltd, the owner of the Vmoto brand which currently distributes the Chinese-made scooters, motorcycles and All-Terrain Vehicles (ATV) to retail distributorships in Australia, the United States and New Zealand.
Mr Sergeant said Optima was already canvassing opportunities to expand Vmoto exports into South East Asia - "where capital city infrastructure makes a scooter purchase a logical and inexpensive form of transport amid some of the most congested transport systems in the world".
"Vmoto has 65 dealers throughout Australia and has recently established distribution networks in New Zealand (eight dealers) and the United States (three dealers)," Mr Sergeant said.
"Further, negotiations are currently underway for distribution agreements in new international markets.
"Any global expansion will be through our corporate headquarters and distribution centre in Perth."
Vmoto is a wholly-owned Australian motor cycle brand specialising in hi-tech motor scooters.
It sources its units from state of the art production facilities in China, where one supplier operates the world's largest motorcycle factory.
Mr Sergeant said all factories contracted to build Vmoto brand motorcycles were chosen because of their stringent step-by-step quality control systems, attention to detail, and world-class research and development facilities.
The Vmoto brand and trademark is registered in over 15 countries.
"The deemed issue price of 60 million consideration shares was established prior to market speculation about an imminent acquisition and expansion by the Group," Mr Sergeant said.
"The acquisition is subject to shareholder approval, which will be sought at a meeting of shareholders planned for late June."
Optima's current assets include a 10 year licence to manufacture, market and distribute the iconic West Australian surf brand, West, in the United States, together with a similar 5 year licence to distribute throughout the US, the well known surf accessory brand, Creatures of Leisure.
Source:
Kevin Skinner
Senior Consultant
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: (08) 8234 9555
Fax: (08) 8234 9566
Mob: 0414 822 631
kevin@fieldpr.com.au
Contact
Blair Sergeant
Optima Corporation
TEL: +61 8 9382 1311 / 0413 677 110
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