11th Aug 2014 08:20
LONDON (Alliance News) - Westminster Group PLC shares surged higher on Monday morning after the company said its joint venture with CWind Ltd has signed a memorandum of understanding with an African government ahead of it signing a long-term provision of a sea ferry transfer service.
Westminster shares were up 16.1% to 56 pence in early trading on Monday, putting it top of the risers on AIM.
The firm, which provides products to the security, defence, fire protection and safety markets, said that it and CWind, a UK sea ferry operator, had signed the deal under the moniker Sovereign Ferries.
Under the terms of the deal, the pair will provide a ferry service to transport passengers between key national facilities in the unnamed country. In addition, the contract is expected to expand to include a water taxi service around the coast of the country to neighbouring territories.
Westminster said the contract, which is initially for 25 years, would generate revenues of USD300 million over the duration, based on current market conditions and forecasted economic growth.
"We have been in discussions with the government concerned for some time and the signing of the MoU is a major step forward. Due to the demand for our services, we anticipate this to be a fast track process with all licence and formalities completed and the service expected to commence from the end of 2014," said Westminster Chief Executive Peter Fowler.
By Sam Unsted; [email protected]; @SamUAtAlliance
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