* Says offer equivalent to 50p per Tanfield share in issue
* Shares rise as much as 44 pct
March 10 Britain's Tanfield Group Plc (TAN.L)
said Smith Electric Vehicles US offered to buy the assets of
its electric vehicle division for 37 million pounds ($55.37
million) in cash, sending its shares up as much as 44 percent.
The British commercial electric vehicle maker said the
non-binding, conditional offer from its associate company,
Smith Electric, was equivalent to 50 pence per Tanfield share
Tanfield said it would also be entitled to an additional
33.3 million pounds contingent credit in any initial public
offering of Smith Electric before September 2015, which was
equivalent to up to 45 pence per Tanfield share in issue.
The company said the assets that Smith Electric offered to
buy also included the 49 percent shareholding in Smith owned by
In 2009, Tanfield established Smith Electric in North
America, with a 49 percent equity holding in it. The company
licenses its commercial electric vehicle technology to Smith
Electric in exchange for a royalty fee.
The company also said it expected to report net cash at
Dec. 31, 2009 of around 5 million pounds. Tanfield shares were
up 40.4 percent at 40 pence at 0922 GMT. They touched a high of
41 pence earlier in the session, making them the top gainer on
the London Stock Exchange.
(Reporting by Kumar Alagappan in Bangalore; Editing by