Volt launches legal action over Wescone acquisition

Henderson-based Volt Power Group has filed a writ in the Supreme Court of Western Australia against the vendor of Wescone Distribution, a mining equipment manufacturer it acquired in January 2018.

In a statement to the ASX, the power generation technology developer said the writ was filed on the basis that Wescone did not disclose material information in regards to its relationship with BHP Group prior to being acquired by Volt.  

After approximately 25 years of Wescone supplying and servicing its W300 sample crushers for BHP, it was announced on 11 September last year that the mining giant had opted to use an alternative business to service the sample crushers.

Wescone sold six new W300-3 sample crushers to BHP in May and June of 2018.

Its revenue from BHP for the period ended 30 June 2018 was approximately $600,000.

Volt said it would be seeking damages and interest costs for a breach of contract and a refund on its purchase of Wescone, as it alleges that its Bentley-based subsidiary engaged in deceptive and misleading conduct.

In the 11 September 2018 announcement Volt managing director Adam Boyd said the board was “very disappointed” with the unexpected decision.

“We are continuing to work with the Wescone vendor to clarify the circumstances that led to the BHP position and outcomes,” Mr Boyd said.