Last checked at 9 Aug 2010 09:22
09 August 2010
The Tanfield Group Plc ("Tanfield")
Proposed US Flotation of Electric vehicle businesses
- Non-Binding Heads of Agreement
The Board of Tanfield is very pleased to announce that it has signed non-binding, Heads of Terms to consolidate SEV UK and SEVUS.
The strategy to consolidate both entities is as a consequence of 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.
Under these updated terms of the consolidation Tanfield Group is expected to retain a significant interest in the combined entity and share in its future growth and opportunity.
Tanfield understands that SEVUS's plans include a possible public offering of its equity securities on the US NASDAQ exchange, which could be as early as the first half of 2011.
Tanfield believes that 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.
As to be expected any consolidation will be subject to certain customary terms and conditions some of which are outside of the control of Tanfield and SEVUS.
The Tanfield board believes that maximum shareholder value will be derived through this strategy. A further update and more detail will be issued as this plan progresses.
For further information:
The Tanfield Group Plc 0845 1557 755
Darren Kell
Arbuthnot Securities Limited (Nomad and Broker) 020 7012 2000
James Steel / Ed Gay / Ben Wells