Overdone21 Sep 2012 13:52
I think this is overdone. Sevus isn't doing TAN any favours here but TAN's value hasn't dropped by 30 per cent. Sure the prospect of a balance sheet revaluation from a SEVUS IPO has disappeared for now but I would imagine that SEV may have been approached with private equity on good terms, which is why it's pulled the IPO. The real task for TAN is to make sure there's no further dilution, but it's possible that a private equity buyer may also pick up Tan's stake, or part of it, now that interest has been raised.