LONDON, UK: Vmoto Limited (ASX: VMT) has entered into an agreement with its exclusive distributor for the UK, Vmoto UK Distribution Limited (part of GreenMo Group B.V.) and its administrator, for the Company’s wholly owned subsidiary, Vmoto Soco UK to acquire the business and certain assets of UK Distribution for a total cash consideration of approximately A$1 million.
The acquisition will be funded from the Company’s existing cash reserves.
Vmoto’s Managing Director Mr Charles Chen said, “This is a strategic acquisition that provides Vmoto with discounted assets and direct access to over 50 active B2C dealers in the UK, which is a large EV market for the Company, and will allow Vmoto to further expand its presence in the UK with an established management team. Direct sales to the B2C dealers will also allow Vmoto to earn higher profit margins and focus on growing the UK market share with more focused support.”
UK Distribution has been Vmoto’s exclusive distributor in the UK market since 2015 and has grown its sales to A$7.7 million (~GBP4.3 million) by 2022. It has also recognised the top sales by units of electric motorcycles/mopeds in the UK for several years.
UK Distribution is the sole UK importer and distributor of Vmoto and Super Soco branded electric motorcycle products.
The key terms of the acquisition agreement are as follows:
- Vmoto Soco UK to acquire the business and certain assets of UK Distribution, including dealers/customers list, management team and employees, stocks, and fixed assets at discounted prices; and excluding all liabilities.
- Vmoto Soco UK to pay approximately A$1 million (GBP 557,000) to the administrator of the UK distributor for the above.
- Vmoto Soco UK to continue the operations in Newark, UK for 2 months while relocating its operations to Navenby, UK.
- Vmoto UK Distribution Limited will not trade under the Vmoto name.