Tanfield’s SEV UK and USA to merge
Tanfield, owner of Snorkel (UpRight) has announced that it has signed a non-binding-agreement with SEVUS, the US business in which it holds a 49 percent stake, to consolidate it with its wholly owned Smith Electric Vehicles UK business.
The company says that its strategy to consolidate both entities is as a consequence of a review of how to optimise shareholder value and a review of general market opportunities.
Under the updated terms of the consolidation Tanfield Group is expected to retain a significant interest in the combined entity and share in its future growth and opportunities.
Tanfield also said: “We understand that SEVUS's plans include a possible public offering of its equity securities on the US NASDAQ exchange, which could be as early as the first half of 2011. Tanfield believes that SEVUS will be well positioned as a US Company solely dedicated to low carbon transport technologies to take full advantage of the positive commercial and financial environment.”
As a result of this announcement Tanfield has postponed its Annual General Meeting scheduled for today.
Tanfield had agreed to sell its UK business to SEVUS in March but it was subject to funding approvals. In July it extended the agreement but one assumes from this announcement that the funding has run into difficulties?
The sale would have raised significant funds for Tanfield's aerial lift business and shareholders this year. It now looks as those funds may be delayed into 2011 with the possible flotation.