Partner Article

Tanfield subsidiary set for merger

ELECTRIC vehicles giant Tanfield has announced plans for a merger, rather than the proposed £37m buy-out deal, with its North American sister company.

The Washington-based firm received an offer in March from Smith Electric Vehicles US (SEVUS) – which is part owned by Tanfield – to buy Tanfield-owned SEVUK.

However the company has told the stock market that SEVUK and SEVUS will now merge, allowing Tanfield to maintain a foothold in the lucrative US market.

Tanfield said the strategy follows a review of how to optimise shareholder value and a review of general market opportunities.

The market review ‘recognises the incentives and legislative factors influencing demand for low-carbon technologies’, the company said.

Tanfield expects to retain a significant interest in the combined entity. It says it understands SEVUS’s plans include a possible public offering on Nasdaq, perhaps as early as H1 2011.

The group believes 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”.

This was posted in Bdaily's Members' News section by Ruth Mitchell .