Sealegs signals global expansion plans with new name

Auckland-based Sealegs today announced plans to expand globally and to change its name.

The amphibious boat manufacturer – which intends to rebrand as Future Mobility Solutions as soon as practicable – says it aims 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 says it plans to buy a 70% 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 25c a share. The NZX-listed stock rose 8.7% to 10c.

The cash consideration will come from cash resources and the proceeds of a new share placement, Sealegs says in a statement. Sillinger is headquartered in France and manufactures and sells a wide range of craft, specialising in the military and defence sectors.

Sealegs also says it has entered a conditional agreement to buy a 50.1% stake in Gemini Marine, also through the issue of new shares to the owners of Gemini at 25c 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 25c 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 says 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)