Perth-based scooter manufacturer Vmoto Limited announced that it has acquired the remaining 40 percent in the issued capital of German electric motor company VE-Max, taking its interest to 100 percent.

The acquisition of the remaining 40 percent comes as Stage 2 of Vmoto’s manufacturing facility in Nanjing, China continues to be built ahead of schedule and the growing demand of low emission electric engines increases.

In a release from the company, it stated that, “After working with Vmoto for the last five months, the 40 percent minority shareholders of VE-Max have agreed to sell their shareholding in VE-Max to Vmoto, in exchange for 22,400,000 ordinary fully paid shares in Vmoto, at a deemed issue price of 20 cents. The shares will be issued within 30 days of execution of the Heads of Agreement pursuant to Vmoto’s existing 15 percent placement capacity and will be held in voluntary escrow for a period of 12 months from the date of issue.”

Vmoto’s Managing Director Patrick Davin said, “This is a well thought out strategic move by both parties. As we have worked with E-Max over the last five months, it has become clear that in order to run the operations to maximum effect in conjunction with our existing operations, we need to merge the group to run as one.”

Davin added, “Fortunately, the E-Max people have also seen that as Vmoto Limited continues to grow, their best return on investment to date will be to become shareholders of the parent company and enjoy the growth of the entire organization, rather than just the electric division.”

Vmoto’s shares surged 15.5 percent since the announcement was made Friday.