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Stokes plans to acquire electrical business and change name to Enevis

The acquisition will allow Stokes to become a major provider of energy technology and services.

Proposed new structure on mud map
The Lumex acquisition will complement the existing lighting and audio visual technologies division

Stokes Ltd (ASX:SKS) will be putting a number of proposed transformational changes to its shareholders to vote on at the upcoming extraordinary general meeting on 20 July 2018.

Foremostly it will be looking for approval for the asset sale agreement executed yesterday to acquire Lumex Electrical.

Stokes will seek shareholder approval to raise up to $3.48 million through the placement of 17.4 million shares priced at 20 cents.

Finally, the company will propose to change its name to Enevis Limited, which better describes Stokes’ renewed focus on energy efficiency with vision.

“embarking on the next phase of its growth agenda”

Stokes’ executive chairman Peter Jinks said: “Stokes is excited to extend its product offerings with the addition of the Lumex suite of quality brands and we welcome the experience and expertise that Mr Erik Scholz will bring to the group.

“Stokes is embarking on the next phase of its growth agenda with a focus to leverage its combined expertise in audio visual, lighting, solutions architecture and deliver energy efficient outcomes to its customers.

“The group intends to bring new technologies to market which target this growing sector.

“We believe Lumex intellectual property, brands, technology partners and 'blue chip' customers will in turn benefit directly from complimentary products which already form part of the Stokes portfolio, and that the end result will be for Stokes to have a seamless energy efficient lighting and AV solution for the commercial, Industrial and Infrastructure markets."

Lumex to share in upside by receiving stock

Stokes and its wholly owned subsidiary Urban Lighting Group Pty Ltd plan to acquire the assets from Scholz Industries Pty Ltd in exchange for 10 million Stokes shares in tranches.

Up to 6 million shares will be issued initially and then up to a further 4 million over a 2-year period subject to performance hurdles.

Focused on electrical efficiency

Lumex is a business focused on the Australian and New Zealand Electrical market, with particular emphasis on energy efficiency, LED lighting, and related controls and accessories.

It has existing commercial trading arrangements in place with many of the key electrical wholesaler groups and independent wholesalers in Australia.

The brand has traction with Energy Efficiency Integrators, Facility Management Organisations, electrical consultants, electrical contractors and large 'end users' in the commercial and industrial sector.

Lumex also owns an auditing and customer support program called Enerspec.

This allows direct involvement with key customers by managing the design, government certificate management and financial justification of commercial / industrial lighting solutions.

Quick facts: Enevis Ltd

Price: 0.12 AUD

ASX:ENE
Market: ASX
Market Cap: $11.99 m
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