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Tanfield to float US business SEVUS on NASDAQ after consolidation with SEV UK

Manufacturer of battery powered vehicles Tanfield (LON:TAN) has signed a non-binding heads of terms to consolidate its US electric vehicle business SEVUS and provider of electric vehicles, materials handling and fleet maintenance services, SEV UK, and also announced plans to float SEVUS on the US NASDAQ exchange in H1 2011.

The company said that the merger was a consequence of a review of how to optimise shareholder value and of general market opportunities. Under these updated terms of the consolidation Tanfield Group is expected to retain a significant interest in the combined entity and share in its future growth and opportunity.

As for SEVUS’ US flotation, Tanfield said that the business would be well positioned as a US company solely dedicated to low carbon transport technologies to take full advantage of the positive commercial and financial environment.

Shares in Tanfield slipped 5.5% on the announcement.

Disclosure: The author holds no positions in the company