Viento can’t explain share price surge

Mining services contractor Viento Group says it can’t explain why its share price has risen by 75 per cent to 12 cents per share in two weeks.

In response to an inquiry by the ASX, Viento said it was not aware of any information not announced to the market that could explain the share price increase, but said it was considering a pro-rata entitlements issue to all security holders, the terms of which are yet to be finalised.

HVLV, a subsidiary of Viento, holds a majority 65 per cent stake in Power Infrastructure Services (Powins), which fell into the hands of receivers in December last year.

“The company has now been advised by KordaMentha, as receiver and manager to Powins, that BHP Billiton Iron Ore will not proceed with its contract to complete refurbishment of the Yandi OHP substation,” Viento said.

Viento acquired HVLV for $10.6 million last year.

The purchase price was reduced by $9.5 million after it was revealed an oil and gas project run by HVLV had run up to $8 million over budget.

Viento shares closed 8.3 per cent lower at 11 cents per share.