the west australian

Vmoto joins electric venture
ADRIAN WATSON, The West Australian December 10, 2009, 5:23 am

WA-based scooter company Vmoto is poised to capitalise on a worldwide push towards lower carbon emissions by striking a joint venture with one of the world's leading electric scooter companies, E-Max.

Vmoto is expected to emerge from a trading halt today to announce the biggest deal in its history, committing 3.52 million euros ($5.74 million) to take a 60 per cent stake of a partnership with Munich-based E-Max. The commitment includes a 2.5 million euro cash injection into the new joint venture.

The deal will be funded with the proceeds of a $6 million placement to Vmoto investors at 20¢ a share - a premium to its last share price of 18.5¢.

Vmoto director Trevor Beazley said the company had already been developing its own electric scooters which were due to be released near the end of next year but this deal would give the company instant access to four of E-Max's electric models.

Mr Beazley said production of the scooters would begin at Vmoto's Nanjing plant next month.

"Blind Freddy knows that electric vehicles in some form or shape will be with us sooner rather than later given the climate change summit in Copenhagen," he said. "This opens up a massive new market for us."

He said the scooters, which produce little to no carbon emissions, would be exported to countries where there was a strong push towards clean technology, such as Australia, New Zealand and Western Europe.

Vmoto managing director Patrick Davin labelled the venture a "great deal" and said expansion of the Nanjing plant would be fast-tracked to absorb the increased demand.

"This new deal advocates the policy to become part of the pollution solution as we move into the next decade, one which I think will see a benchmark change to electric forms of transport for the world," he said.