Partner Article

Tanfield bid promises jobs and investment

New jobs and more investment into the region’s clean technology sector will be secured if a £37m bid for part of electric vehicles giant Tanfield is accepted.

That is according to the Washington-based company’s founder Roy Stanley who believes the bid from its associate company Smith Electric Vehicles US (SEVUS) can only be a positive move for its shareholders.

Tanfield shares jumped as much as 44% on Wednesday after it emerged that SEVUS had offered to buy the assets of its electric vehicle division.

The firm said the non-binding, conditional offer was equivalent to 50p per Tanfield share in issue.

Mr Stanley, Tanfield’s former chairman who now serves as a non-executive director and a significant shareholder, said: “Against the backdrop of the worst recession in history and the poor economy I believe this is a good deal for shareholders.

“It will give them cash plus allows them to participate in any upside with SEV US. It will secure jobs in the north east and increase investment in electric vehicle technology in the region by tapping into the huge federal and investment funding available in the US.”

The company said the assets that SEVUS offered to buy also included the 49% shareholding in Smith owned by Tanfield.

In 2009, Tanfield established Smith Electric in North America, with a 49% equity holding in it.

The company licenses its commercial electric vehicle technology to Smith Electric in exchange for a royalty fee.

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