UpRight Parent Company to Sell Shares to Grow Access Business
Tanfield Group plc, parent company of UpRight Powered Access, announced last week it intends to raise up to 20 million ($37.9 million) through a major share offering. At a meeting in mid-November, Tanfield will ask shareholders to give the directors authority to allot up to 50 million new shares. Admission is expected on November 16.
The directors will use the net proceeds of the offering as working capital to accelerate growth in Tanfield's Powered Access Division. According to Tanfield, the order book for the Powered Access Division continues to exceed expectations • orders have consistently hit 1 million ($1.9 million) or more every week for the past six weeks • and the additional capital will bring the division more in-line with the growth in order intake. Additionally, Tanfield is in advanced negotiations with its bankers to extend the debt facilities available from approximately 5 million ($9.5 million) to approximately 9 million ($17.1 million).
The majority of the working capital will be invested in the supply chain, which will allow Tanfield to capitalize on sourcing components from low cost countries. It also will support an expansion of the company's global network of independent distributors, grow the machine spare parts business, and expand the UpRight product range.
Projected turnover from the Powered Access Division for 2006 is expected to be unaffected by these developments.