Viento halted for Powins dispute

Mining services provider Viento Group has entered a trading halt after a legal dispute with a minority shareholder in its 65 per cent owned subsidiary, Power Infrastructure Services.

Viento owns the share in Powins through its subsidiary HVLV, which it acquired earlier this year for $21 million.

HVLV manufactures portable switchrooms.

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

The company said all of HVLV’s mining contracts had been completed successfully, however, and the oil and gas project was back on track.

Viento forecast a turnover of $100 million in the second half of the financial year, after an estimated EBITDA loss of between $7.5 million and $8.5 million for the six months to December 31 this year.

Viento shares last changed hands at 7.5 cents, and is expected to make an announcement on the dispute before Wednesday.