Tanfield wins favourable US court ruling in Snorkel investment dispute

(Alliance News) - Tanfield Group PLC shares rose on Monday as it said a US court confirmed that its interest in Snorkel International Holdings LLC cannot be bought for nothing, as alleged by Xtreme Manufacturing LLC.

Shares in Tanfield Group were up 13% to 4.03 pence in London on Monday afternoon.

The passive investing company became a 49% interest holder in producer of self-propelled, towable and push-around aerial lifts Snorkel through an agreement with Xtreme in 2013.

Tanfield said the investment is worth GBP19.1 million.

In October 2019, Tanfield said it had received a summons and complaint in Nevada, US that alleged that Xtreme can buy Tanfield's interest in Snorkel for nothing through its call option notice, without a preferred interest payment of USD25 million.

The Tanfield board asserted its own counter claims against Snorkel, SKL Holdings LLC, Xtreme and others in ongoing legal proceedings.

In March, Tanfield requested that the court rule that Snorkel is required to pay the preferred interest prior to, or in conjunction with, the exercise of the call option.

Tanfield said the minutes of the hearing show the court granted the motion and "does not see an ambiguity".

The firm said it "views this as a very positive outcome" which confirms that the stake cannot be bought for nothing.

The remainder of the issues in the US proceedings will continue to progress to trial, which is set to begin in October, Tanfield added.

"The board continues to believe that further positive outcomes to the proceedings are possible, and the company will continue to vigorously defend its position," Tanfield said.

By Michael Hennessey, Alliance News reporter

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