5th May 2015 08:22
LONDON (Alliance News) - AIM-listed investing company Tanfield Group PLC on Tuesday said Smith Electric Vehicles has signed a deal with Hong Kong-based FDG Electric Vehicles Ltd to create a joint venture offering all-electric vehicles and fleet electrification services.
Tanfield owns a 5.76% stake in Smith Electric Vehicles. Under the terms of the joint venture, all shares in the new entity will be distributed to Smith shareholders on a pro rata basis. Tanfield expects the new shares to be worth around USD2.3 million, in addition to the existing value of its Smith stake, which is USD10.7 million.
Under the terms of the joint venture, FDG will invest USD15 million in cash and USD30 million in assets and licences for commercial vehicle electric design and intellectual property. Smith will be responsible for manufacturing the vehicles, with the joint venture entity to handle US product development, sales and marketing.
Tanfield shares were up 1.1% to 22.50 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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