REG - Tanfield Group PLC - Snorkel Investment Update

TanfieldAnnouncement

16/08/2024 12:45

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RNS Number : 8044A  Tanfield Group PLC  16 August 2024

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

 

 

 

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