UPDATE 1-Tanfield to raise 2 mln stg to consolidate vehicle ops

* To offer 20 mln shares at 10p each, a 26 pct discount

* Gets 750,000 stg standby loan facility from directors

* Sees SEV US IPO as early as H1 2011

* Shares up 12.6 pct
(Adds details)

Sept 8 (BestGrowthStock) – Tanfield Group Plc (TAN.L: ) said it
planned to raise 2 million pounds ($3.07 million) by offering
shares at a discount to complete consolidation of its electric
vehicle business.

The troubled electric van maker will offer 20 million
shares at 10 pence apiece, a 26 percent discount to the stock’s
Tuesday close.

The company said some of its directors would provide a
750,000 pounds standby loan facility.

Tanfield said its associate company, Smith Electric
Vehicles (SEV) US, might go public in the United States as
early as the first half of 2011.

In March, Tanfield had said SEV US offered to buy the
assets of its electric vehicle division for 37 million pounds.

Tanfield on Wednesday said SEV US was in talks with
investors to raise additional funds to support its growth plans
and pay the company for its electric vehicle unit.

Tanfield owns 49 percent of SEV US, according to its web

Shares of the company were up 12.6 percent at 15.25 pence
at 0815 GMT on the London Stock Exchange.
($1=.6513 Pound)
(Reporting by Shivani Singh in Bangalore; Editing by Vinu

UPDATE 1-Tanfield to raise 2 mln stg to consolidate vehicle ops