Information  X 
Enter a valid email address

Tanfield Group PLC (TAN)

  Print      Mail a friend

Thursday 07 October, 2004

Tanfield Group PLC

Acquisition - replacement

Tanfield Group PLC
07 October 2004


For Immediate Release
                             Tanfield Group Plc

This announcement replaces the previous announcement RNS No. 6336D released at 
08:00hrs on 4 October 2004. The reference to the placing on Monday 11 October 
should have referred to '16,500,000' new Ordinary Shares not '16,600,000'.

All other details remain unchanged, and the full amended text appears below.


Embargoed release: 08.00 4 October 2004


                             Tanfield Group Plc

                    Acquisition of SEV Group Limited ('SEV')

The Board is pleased to announce the acquisition of SEV. SEV is a long
established, profitable, business. It has a strong international reputation for
design and manufacture of electric vehicles and aerial access equipment for
industrial and closed urban use, as well as providing a national service and
maintenance capability to its customers. The directors believe that zero and low
emission delivery vehicles, access platforms and people carriers have
significant growth potential given their cost and environmental benefits.

Tanfield has been a major supplier to SEV for a number of years and the
directors of the Company identified SEV as an acquisition on the basis that the
synergies between the businesses offered a number of growth opportunities. The
Directors believe that the acquisition is consistent with the Company's strategy
of moving up the value chain in order to enhance its margins.

In its last accounting period, to 31 December 2003, the profits after tax and
after directors' drawings of SEV were £131,000 and the net assets of the
business at the end of the period were £1,343,000.

The price being paid for the acquisition is £2.2 million in cash and 1,000,000
new ordinary shares.

The acquisition will be completed in two stages so that investors can benefit
from the Enterprise Investment Scheme. The first stage is the acquisition of
SEV's hire business for £540,000 by the Company's wholly owned subsidiary
Express 2 Automotive Limited and the second stage is the acquisition of the
issued share capital of SEV's non trading parent company, Motionobject Limited
by the Company's wholly owned subsidiary 3D Image Box Limited for £1.66 million
and the issue of 1,000,000 new ordinary shares. Completion of the two stages
will occur on consecutive days and is conditional on admission to AIM of the
company's new ordinary shares placed by Daniel Stewart as described below.

In order to help fund this acquisition and provide further working capital for
the Company, as previously announced, the Company placed through Daniel Stewart
40,050,000 new ordinary shares at 10p each. 23,550,000 of these shares will be
admitted to trading on AIM on Friday 8 October 2004 and the remaining
16,500,000, which have been placed with investors under the Enterprise
Investment Scheme will be admitted to trading on Monday 11 October 2004. In
addition, the 1,000,000 new ordinary shares issued to a shareholder in
Motionobject Limited as part of the acquisition will be admitted to trading on
Tuesday 12 October 2004.

For further information call:

Tanfield Group Plc
Roy Stanley - Chief Executive          -      01207 521111

Daniel Stewart & Co
Ruari McGirr                           -      020 7374 6742



                      This information is provided by RNS
            The company news service from the London Stock Exchange