Rangatira, the Wellington-based investment group, has lifted its stake in Magritek after the magnetic resonance imaging firm met sales targets. The new funds will help boost the firm's global sales.
The investment firm lifted its stake in Magritek to 18 percent from 12 percent for an undisclosed sum after the high-tech manufacturer met certain sales milestones, triggering an undertaking made at the time of the original investment. Rangatira chairman David Pilkington signaled the increased stake was likely at the firm's August annual meeting.
The extra capital will let Magritek strengthen its balance sheet and lifts it investment in international sales and marketing to beef up its global aspirations. The firm counts Europe and the US as its major markets, with each accounting for about 40 percent of Magritek's revenue, and it's forecasting significant growth in Asia in the near future.
"Rangatira's investment provides the means to invest further in our sales capability, and capitalises on the interest in our powerful, portable MRI (magnetic resonance imaging) and NMR (nuclear magnetic resonance) technology," Magritek chief executive Andrew Coy said. "This second tranche of capital allows us to add further fuel to the tank and accelerate revenue growth and market share."
Rangatira split up its investment in Magritek due to the firm essentially being a start-up, and the investment firm wanted to ensure the manufacturer met its targets before investing further.
Shares of the investment fund trade on the Unlisted platform. Its class A shares last traded at $9.50 and its class B shares at $9.40.
(BusinessDesk)
Paul McBeth
Tue, 07 Oct 2014
Tue, 07 Oct 2014
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Rangatira lifts Magritek stake to boost international sales
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