In a bid to accelerate the international expansion of its subsidiary Vmoto, Subiaco-based Optima Corporation Ltd is positioning itself to acquire a major player in the international scooter industry which sources product out of China. Optima has signed a letter of intent to acquire Freedomotor Company Ltd, an international scooter/motorcycle trading and distribution company. The deal is forecast to add total revenues of approximately $20 million for the 6 months ended 30 June 2007 and an estimated $50 million for the year ended 30 June 2008, generating NPAT of approximately $1.8 million and $4.1 million respectively.Freedomotor has an office based in Shanghai and has over 30 clients located in Europe, Australia, North America, South America and South Africa. Last month, in line with its strategy to foster international opportunities, Vmoto signed a distribution agreement with The Sharaf Group, headquartered in Dubai, United Arab Emirates. An agreement was reached whereby Sharaf would have exclusive distribution rights of the Chinese-built Vmoto in the UAE, with a 12-month option to become master distributor for the Middle East, servicing 13 countries. The agreement is valued at $4.2 million, in the event that the Sharaf exercises its option of the remaining 13 countries. At market close, shares in Optima were up 3.8 per cent to 8.3 cents
© Business News 2018. You may share content using the tools provided but do not copy and redistribute.