Clean-burning fuel system outfit Westport Fuel Systems Inc. (TSX:WPRT) (NASDAQ:WPRT) made a sharp move ahead on Monday morning following news that the Vancouver-based company is divesting its Auxiliary Power Unit, or APU, segment. A buyer wasn't identified, but Wesport did say that the business fetched $70 million and that the transaction is expected to be closed in the next few weeks.
After Westport underwent a strategic review following the closing of the merger with Fuel Systems last summer, the company committed to streamlining operations to focus on alternative fuel solutions for the transportation and automotive industries. Utlimately, this resulted in the APU business hitting the auction block.
The news has landed Westport on the list of the biggest movers on the Toronto Stock Exchange today. Westport entered Monday trading at C$1.40 per share, equating to a market capitalization of C$153.14 million. Shares have shot ahead by 17.9% to C$1.65 shortly into the afternoon session. This is a pretty big move for a stock looking to reverse of long-standing downtrend. In fact, shares briefly traded over their 200 day moving average (currently at C$1.73), something that hasn't happened since July 2015. As it stands, though, shares have fallen back under the key moving average as the day moves on.
