Friday 13 December 2013

Flybrid set to launch refuse truck KERS

As forecast here on 8 December, Torotrak plc is to buy the remaining shares of Flybrid Automotive, but the purchase requires a share issue.

Torotrak plc, of Leyland Lancashire, a leading developer and supplier of emissions reduction and fuel efficiency technology for vehicles, has announced formally today that it has entered into an acquisition agreement to acquire the remaining 80 per cent of the issued ordinary shares in Flybrid Automotive for a maximum consideration of up to £23 million, of which £15 million is subject to performance targets.

The deal is subject to shareholder approval but is a foregone formality.

For the deal, Torotrak will raise £16 million (before expenses) by way of an equity fundraising of an aggregate of 88,888,888 new ordinary shares at an issue price of 18p per share, comprising a Firm Placing, a Placing and Open Offer and a Subscription by Allison Transmission, Inc.

The net proceeds of the issue will finance the initial cash consideration payable for the acquisition, to finance the investment required for the commercialisation of Flybrid's first manufactured product for the commercial vehicle market and to finance the on-going design, development and testing of Torotrak's V-Charge technology and Flybrid's M-KERS technology for the passenger car markets, as well as enhancing Torotrak's testing and engineering capabilities.

The inclusion of the performance targets as part of the purchase will ensure that the founding fathers of Flybrid Automotive of Silverstone, Jon Hilton and Doug Cross, will remain with the company and see through the company's development as well as several important new products which are vital to the future success of the business

Flybrid expects to come to market first with the system it has developed for Wrightbus but a system suitable for low volume, high-duty refuse trucks is expected to follwo shortly aferwards. 

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