23rd Dec 2024 10:58
(Alliance News) - Shares in Seeing Machines Ltd climbed on Monday after it announced a significant investment from, and collaboration with, Mitsubishi Electric Mobility.
Canberra-based Seeing Machines designs artificial intelligence powered operator monitoring systems to enhance transport safety.
On Monday, it secured a GBP26.2 million strategic investment from Mitsubishi Electric Mobility as part of a collaboration agreement.
Mitsubishi Electric Mobility is a wholly-owned subsidiary of Mitsubishi Electric Corp, a Tokyo-listed company with a JPY5.62 trillion market capitalisation or around GBP28.55 billion.
The investment, via a subscription for shares at 4.09 pence each, is worth around 15% of Seeing Machines' share capital.
Shares in Seeing Machines jumped 8.7% to 4.84 pence each in London on Monday morning. It has a market value of GBP205.0 million.
Seeing Machines said it understands MEM has bought additional shares from Lombard Odier Asset Management and VS International Venture, the largest and second largest shareholders respectively of the company, to increase its holding to 19.9%.
MEM's ownership level is restricted to 19.9% in accordance with the Australian Corporations Act and the agreement restricts the ability to "incrementally" increase further other than under certain agreed circumstances.
The collaboration agreement is to facilitate joint automotive business opportunities in Japan.
The companies will jointly access aftermarket growth in North America, Europe and Japan and leverage Seeing Machines' proprietary IP to assess and enter new adjacent markets where Mitsubishi Electric Mobility has a leadership position.
Seeing Machines said the investment "further strengthens" its balance sheet and provides capacity to focus on growth opportunities across new markets.
Chief Executive Paul McGlone called it a "pivotal partnership".
"We have been working closely with our new colleagues at Mitsubishi Electric Mobility and the synergy is clear: promising significant benefits for both of our businesses. We have carefully considered this investment in Seeing Machines to ensure that we remain focused on supporting our existing key customers and programs across our transport focused businesses, while we accelerate growth in currently under-served markets and together explore new opportunities in adjacent industries."
By Jeremy Cutler, Alliance News reporter
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