1 Apr 2011

Full control of HTS-110 possible - Scott Technology

6:30 pm on 1 April 2011

Scott Technology is not ruling out taking full control of the electromagnet maker HTS-110 at some stage, after paying $4.4 million for a stake of 51%.

Under the deal, Scott will put in about $1.5 million to help boost the sale of HTS's existing products.

The balance will be used to buy some shares off existing investors, Industrial Research and American Superconductor Corporation, and the entire holding of Endeavour Capital.

HTS designs, makes and sells powerful electromagnets to use in superconducting technology, and it's also used in nanotechnology, ultra-high capacity computer hard drives and accelerated drug development.

Scott Technologies managing director Chris Hopkins says HTS will provide a modest lift to the company's earnings from the outset, but it's expected to grow quickly.

He says Scott Technology will debt-fund the 51% stake in HTS, though the company's planning to issue shares to shareholders to repay the loan.