Tanfield Share Discussion Threads

[m.t.glass] 29/2/2016 07:26

From HongKong last night:

"... On 26 February 2016, FDG Strategic Investment foreclosed upon the Collateral following the occurrence of an event of default by Smith under the Loan Agreement and the Collateral was transferred from Smith to FDG Strategic Investment. As a result of the Foreclosure, the JV was owned as to approximately 78.67% by the Group and as to approximately 21.33% by Smith..."


Presumably we will now get an rns from Tanfield confirming? (JV ratio was previously 52:48%)

"... Since the inception of the JV in April last year, the Group, Smith and the JV have been collaborating in launching the Group-designed electric panel van and passenger van in the US market. The JV has been focusing on its effort to finalize homologation of a panel van and passenger van designed by the Group to comply with the standards of the Department of Transportation of the US, which is expected to be completed by June 2016. The JV is also building up a robust marketing and sales campaign for the panel van and the passenger van. The Group has sent two marketing vehicles to the US for the JV to do roadshows and showcase the Group’s quality products..."



This makes the Smith/FDG enterprise significantly less American than before - allowing pro-oil US critics to more easily protest against any future state subsidy. The announcement appears to confirm that the chinese designed van is the only product range that Smith will be offering within the JV (theoretically Smith itself, outside of the JV, is able to pursue development of other vehicles. I presume they are financially in no position to do so at the moment). Smith must surely have known, when they borrowed the $2m in December, that they would not be able to repay it by the deadline, and were effectively signing away a big chunk of the JV, and a percentage of Smith, to chinese hands. It was thus little more than a sale disguised as a loan.







"JV (=) .. Orng EV Solutions, Inc., a company incorporated under the laws of the State of Delaware;.."

, Smith (=) .. Smith Electric Vehicles Corp, a company incorporated
under the laws of the State of Delaware, in the US, and is
owned as to approximately 10.38% on a fully diluted basis
by the Company (FDG) as of the date of this announcement;.."

[vauch] 22/2/2016 16:24

Smith Electric Vehicles - The carrying value of Smith in the interim balance sheet of the Company at 30 June 2015 was £4.8m, amounting to approximately 3.1 pence per share of the proposed enlarged issued share capital. The board of Tanfield is currently reviewing the position of the investment in Smith and its carrying value and will update shareholders in due course

This asset may as well be written off then any return would be a bonus and if no return not a disappointment.

[knicol46] 22/2/2016 12:34

£400k raised @ 14.5p (premium to current price)
Snorkel International Holdings – As announced on 2 December 2015, based on information provided by Snorkel, Tanfield estimated that Snorkel sales in 2015 would be approximately 30% higher compared to 2014 as the business continues to progress year on year. The carrying value of the 49% holding and the preferred interest holding (Loan note) is $60.1 million as set out in the Company's interim accounts which, based on the current exchange rate, is around £41.5 million. This represents approximately 27 pence per share of the proposed enlarged issued share capital.
Smith Electric Vehicles - The carrying value of Smith in the interim balance sheet of the Company at 30 June 2015 was £4.8m, amounting to approximately 3.1 pence per share of the proposed enlarged issued share capital. The board of Tanfield is currently reviewing the position of the investment in Smith and its carrying value and will update shareholders in due course

[knicol46] 22/2/2016 12:32

£400k raised @ 14.5p (premium to current price)
Snorkel International Holdings – As announced on 2 December 2015, based on information provided by Snorkel, Tanfield estimated that Snorkel sales in 2015 would be approximately 30% higher compared to 2014 as the business continues to progress year on year. The carrying value of the 49% holding and the preferred interest holding (Loan note) is $60.1 million as set out in the Company's interim accounts which, based on the current exchange rate, is around £41.5 million. This represents approximately 27 pence per share of the proposed enlarged issued share capital.
Smith Electric Vehicles - The carrying value of Smith in the interim balance sheet of the Company at 30 June 2015 was £4.8m, amounting to approximately 3.1 pence per share of the proposed enlarged issued share capital. The board of Tanfield is currently reviewing the position of the investment in Smith and its carrying value and will update shareholders in due course

[multiplural] 18/2/2016 11:36

Let us for arguments sake say that the sale won't happen before another year. The carrying value of the Snorkel ownership is 27p and the put option is at a minimum 41p if criterias are met. I would call the yield from now on quite good in both circumstances between 100 and 200% in a year. It is absolutely crazy that we trade here, but then again another , in many, opportunity to pick up more.

[m.t.glass] 18/2/2016 11:11

I agree. If the sale were imminent - ie likely within say one month or so - they would not have asked for cash. The cash call kinda suggests the sale is not imminent. And that's how the market appears to have viewed it.

[donemyhomework2] 18/2/2016 10:02

Its amazing how different explanations we get over the placing.

I opt for the obvious one, that no sale is imminent and they will need the money to pay their salaries!!

[multiplural] 18/2/2016 08:45

Well, if you can keep the price down long enough, chances are that shareholders will acccept a bid in the late 20's whereas if the price was "right" which in my opinion is mid 20's then you probably would need a bid in the late 30's to get the company. I would not rule out that Mr. Ahern have friends massaging this co's price in the market.

[a2584728] 18/2/2016 08:39

Why would you sell your stock when you have twice your investment in 18 months contracted? I will be adding

[a2584728] 17/2/2016 16:36

Great news IMHO , no pressure to sell to Aherne at a huge discount now.

[multiplural] 17/2/2016 15:47

Vauch, since we have and have had possibility to buy at or below the subscription price in the market, one can hardly be annoyed by the dilution. I find it nice that for once the issue was not discounted compared to market prices.

[vauch] 17/2/2016 15:38

Yet another dilution of small investors

[multiplural] 17/2/2016 15:21

I guess todays RNS explains why the price have been kept low for a while.
This must be a very positive move as Ahern now knows that shareholders are supportive. Maybe this can finally get him to do the right thing and buy the remaining 49% of Snorkel.

[multiplural] 16/2/2016 18:59

Wow, knock out numbers from Snorkel peer Haulotte:


2015 Quarter 4 Activity:
Haulotte Group generated consolidated sales of € 134.5 million in the fourth quarter versus € 92.7 million in 2014, an increase of 45%.
Full year consolidated sales were € 445.3 million against € 412.6 million in 2014, an increase of 8% across the two periods (stable at constant exchange rates).
Excluding FX movements, the Groups cumulative sales are driven by a strong sales performance in North America (+ 32%), which has just completed its best two quarters of activity; and in Asia Pacific (+ 27%), which despite the slowdown of the Chinese economy, political tensions in the Middle East and developments in oil prices, is still dynamic in the AWP market. In Europe, the wait-and-see attitude of major rental companies remains a reality (-12%), despite a last dynamic quarter; and Latin America remains in a difficult situation (-24%).
Rental activity is stable over the year, but Service confirms its growth throughout the year (+ 5% for the full year).
Based on these levels of activity, Haulotte Group confirms its ability to achieve an operating margin rate (excluding FX gains & losses) close to that achieved in 2015.
Outlook:
Driven by buoyant commercial activity at the beginning of the year, mainly in Europe, Haulotte Group expects to show sales growth of close to 5% in 2016.

This definately bodes well for Snorkel as well.

[m.t.glass] 16/2/2016 10:49

Ahern is no fool. If he can persuade Tanfield to accept summat less than the currently agreed deal, he surely will. In one of his recorded interviews he already appeared to be indicating (without accusing Tanfield) that Snorkel had been in a worse state than first thought, and had needed more spending to fix it - in which case he presumably won't feel that he owes Tanfield any favours.

[a2584728] 16/2/2016 09:18

Running costs of a PLC circa £250k pa, if they don't have cash Aherne will be in a position to nick the business at a huge discount.

[multiplural] 15/2/2016 19:00

MT I guess there is always small bills for accountants, stock exchange etc. to be paid. And since Tanfield doesn't have any income at the moment they must be burning small amounts. I doubt that the small need would trigger a cash call from the market, if anything the larger shareholders should be able to cover this without any pressure to the market price.
This whole thing is simply a waiting game with very good odds for a very nice return.

[m.t.glass] 15/2/2016 17:48

Cash for what? Tanfield doesn't do anything and shouldn't be burning cash, except what the directors are pocketing month by month while twiddling their thumbs. Plus admin costs for maintaining a listing and drawing up accounts. If directors truly believe there is a big windfall on the way, perhaps they should agree to take no salary in the meantime, and collect when it happens. A cash call to maintain their salaries will not bring a good response!

[a2584728] 15/2/2016 17:13

Cash call coming ?

[multiplural] 12/2/2016 09:45

Super Bowl Trophy was delivered by FedEx in a Smith van decorated to the occasion.

[multiplural] 09/2/2016 21:21

New Chairman and board members at Smith. Maybe finally something is moving there.

[m.t.glass] 04/2/2016 15:06

Smith's chinese partner FDG reports having shipped its own electric vehicles to the US. The article does make a brief mention of its partner Smith, but not in relation to the shipment: