Shares in Tanfield are motoring after the group received a conditional offer for its electric vehicles business from its US partner.
Smiths Electric Vehicles US - established by Tanfield in 2009 - is now offering £37m in cash for all its electric vehicle assets. This includes the UK business, as well as the 49% Tanfield owns in Smiths US, and licensing and intellectual property rights. It would leave Tanfield with its access business.
On top of the £37m - worth around 50p a Tanfield share - the company could receive an extra £33.3m - 45p a share - if Smiths floats before September 2015. Tanfield said it had granted Smiths a four month exclusivity period, but there was no guarantee an agreement could be reached. In part this depended on Smiths obtaining suitable financing.
The news has seen Tanfield jump 11.5p to 40p, a 40% increase.
