Tanfield Group PLC
16 July 2004
For immediate release: 15 July 2004
Tanfield Group PLC
Authority to issue shares, placing and acquisition
The Directors of the Tanfield Group plc ('Tanfield' or 'the Company') today
announce their intention to raise up to £5m (before expenses) through an
institutional placing of new Ordinary Shares by Daniel Stewart, the Company's
recently appointed Nominated Adviser and Broker.
The placing is conditional, inter alia, on the passing of the special resolution
to be proposed at an Extraordinary General Meeting which is being convened for
11.00 am on 6 August 2004. It is to be noted that the detailed terms of the
placing have not yet been agreed and there can be no certainty at this stage
that the placing will be effected.
It is expected that the net proceeds of the placing will be utilised by the
Directors to fund one or more acquisitions and / or as further working capital
for existing group companies.
The Company has reached a non-binding agreement with the shareholders of a UK
based company, the business of which includes the manufacture of aerial access
platforms. The business is complementary to that carried on by Tanfield. The
non-binding agreement is subject to legal and financial due diligence and
negotiation of a sale and purchase agreement which gives satisfactory
protections to the Company. It is anticipated by the Directors that the
acquisition may be made through a newly formed wholly owned subsidiary of the
Company. It is not at this stage certain that this acquisition will reach
completion as negotiations could be discontinued by either party.
The Directors are also in discussions in relation to two other potential
acquisitions but negotiations are at a very preliminary stage and no outline
agreement has been reached in either case.
The Directors intend to continue to identify and rigorously assess potential
acquisitions. Any such acquisitions will only be made after due and careful
consideration by the Directors.
Further announcements will be made by the Company regarding the progress of
these initiatives in due course.
Enquiries:
Roy Stanley
Tanfield Group Plc Tel. 01207 521111
Alastair Cade or Ruari McGirr
Daniel Stewart & Co Plc Tel. 020 7374 6789
This information is provided by RNS
The company news service from the London Stock Exchange