08.03.2011

Smiths US completes share sale

Tanfield associate Smith Electric Vehicles US has completed a private placing, raising $58 million of new equity.

As a result of the placing, Tanfield now holds 32.2 percent of the outstanding shares in Smiths. The proceeds of the placing will be used by the company to fund the ramp up of its electric vehicle manufacturing capability.

At the same time, Tanfield, which owns Snorkel aerial work platforms, will exercise its option to receive a $5 million pre-payment of the deferred consideration due from Smiths -US on the sale of the Smith Electric Vehicles (UK) business last year.

Vertikal Comment

This is more good news for Tanfield, further boosting its coffers at a time when demand for its products is picking up rapidly. It should help ensure that it pulls through the ramp-up period of the early recovery without the need to borrow.