Tanfield shares rise after "very positive" outcome to US proceedings

(Alliance News) - Tanfield Group PLC on Wednesday announced a favourable ruling by a court in Nevada, sending its shares higher.

The Newcastle, England-based passive investing company said that on Monday, the court granted a new motion, confirming that Snorkel International Holdings LLC did exercise its call option in November 2018, and as such must fulfil the contractual obligations to buy Tanfield's 49% stake in Snorkel.

"The board views this as a further very positive outcome to the US proceedings," Tanfield said.

Tanfield said the Snorkel investment is valued at GBP19.1 million, with the outcome of US proceedings potentially having an impact on the valuation.

Tanfield shares jumped 21% to 6.20 pence each on Wednesday morning in London.

Back in 2019, Tanfield had received a summons & complaint, filed by subsidiaries of Xtreme, SKL Holdings LLC and Snorkel, relating to the completed transaction.

In May 2025, the court confirmed that Tanfield's 49% interest in Snorkel cannot be bought for nil, as alleged by Xtreme Manufacturing LLC, while all other issues in the US proceedings were continuing to trial. The ruling confirmed that Snorkel/Extreme had to pay the "preferred interest" amount, which in September 2018 amounted to USD25 million, plus an additional option price to buy Tanfield's 49% interest in Snorkel.

Tanfield added on Wednesday: "The value of the option price remains a disputed issue that will continue to progress to trial. As such, the total value that Snorkel needs to pay to acquire Tanfield's 49% remains unclear."

Tanfield said it has been necessary to delay the trial, now expected to begin sometime in March or April 2026.

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

Copyright 2025 Alliance News Ltd. All Rights Reserved.

Tanfield