The information contained within this announcement is deemed
by the Company to constitute inside information under the Market
Abuse Regulation (EU) No. 596/2014. Upon the publication of this
announcement via a Regulatory Information Service ("RIS"), this
inside information is now considered to be in the public
domain
Tanfield Group
Plc
("Tanfield" or the
"Company")
Snorkel Investment
Update
The Board of Tanfield (the "Board")
is pleased to update the market on its investment in Snorkel
International Holdings LLC ("Snorkel"), the aerial work
platform business.
Investment Background
·
Tanfield is a 49% shareholder in the equity of
Snorkel following the joint venture between the
Company and Xtreme Manufacturing LLC ("Xtreme") (the "Contemplated
Transaction"), a company owned by Don Ahern of Ahern Rentals Inc,
relating to Snorkel, in October 2013.
·
The Snorkel investment is valued at
£19.1m. The outcome of the US Proceedings referenced below
could have an impact on this valuation.
·
On 22 October 2019, the Company announced that it
had received a Summons and Complaint, filed in Nevada (the "US
Proceedings") by subsidiaries of Xtreme, relating to the
Contemplated Transaction.
Business Update
As reported on 7 August 2024, under
the terms of the joint venture, Tanfield should receive Snorkel's
annual accounts within 120 days of the 31 December year end, but
these were not provided until the beginning of August 2024.
Also, under the terms of the agreement, Tanfield should receive
Snorkel's quarterly accounts within 45 days of a quarter end.
The board have requested the accounts relating to 31 March 2024 on
more than one occasion but no response or reason for the ongoing
delay was ever provided.
As the deadline for providing the
accounts for the second quarter ending 30 June 2024 was also
approaching, the Board felt compelled to enforce its rights under
the terms of the agreement and sought the assistance of the court
in the US Proceedings.
Following a recent court hearing,
the judge has ordered Snorkel to produce the overdue accounts and,
subsequently, the Board expect to provide an update on Snorkel's
progress in the first and second quarters of 2024 before the end of
September 2024.
The Company continues to be fully focussed on
the US Proceedings, which are continuing. Due to the ongoing
delays in obtaining relevant discovery from Snorkel, and
counter-defendants Ahern Rentals Inc and Xtreme, the jury trial
scheduled for a 5-week stack beginning in March 2025 will need to
be rescheduled. The Board is not currently aware of when the
revised date will be but expects a 3-6 month delay is
likely.
The Board continues to believe that a
positive outcome to the proceedings is possible. So far as it
is necessary, the Company will continue to vigorously defend its
position whilst continuing to seek appropriate
advice.
Further updates will be provided to
Shareholders as and when appropriate.
For further information:
Tanfield Group Plc
0203 829 5000
Daryn
Robinson
Zeus Capital Limited- Nominated Advisor /
Broker
James Joyce / Andrew de
Andrade
0203 829 5000
