20.02.2006

Tanfield to raise Acquisition funds

The Tanfield Group PLC has convened an Extraordinary General Meeting for 11.00 am on March 13th 2006 at which a Special Resolution will be proposed to increase the Share Capital of the Company and give the directors the authority, within six months of the Extraordinary General Meeting, to allot up
to 80,000,000 new shares .

Should the Resolution be passed by shareholders the Company intends to raise up to £12m through an institutional placing of new ordinary shares. The proceeds of the placing will be utilised by the company to take advantage of “certain acquisition opportunities” that are currently under consideration.

A circular explaining why Tanfield directors believe that the Proposal is in the best interests of shareholders and recommending that they vote in favour of the special resolution, was posted to shareholders yesterday.

Vertikal Comment

While no mention has been made of any acquisition targets or even sectors, the company has invested a good deal of effort in its Aerial powered access business and in order to continue the upward trend and to consolidate the progress already made, it needs to add some bolt on acquisitions.

Adding additional product ranges and market coverage to its existing trailer and truck mounted product lines. So it is highly likely that a number of aerial work platform targets will be on the groups shopping list.