Talks continue on possible sale of firm

Shadow Transport Minister Owen Paterson (right) paid a visit to Clean Air Power in Leyland wher he was welcomed by John Pettitt from the company.
Shadow Transport Minister Owen Paterson (right) paid a visit to Clean Air Power in Leyland wher he was welcomed by John Pettitt from the company.
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A LEYLAND company has revealed it remains in talks with potential buyers for all or part of the business.

Clean Air Power, which develops compression-ignited natural gas systems and software for heavy duty vehicles, has provided a further update on the review of the group’s strategic options.

The board said in a statement: “KPMG has run an exhaustive process and the Board, as advised by KPMG, remains in discussion with a number of parties that may or may not lead to an offer for all or part of the Group.

“However, in the event of an offer, and partly due to the short term financial constraints that the Group is operating under, the Board can provide no assurance that significant value will be returned to shareholders.

“Furthermore, as the Group’s holding company is based in Bermuda, the Board is also considering the options available under Bermudan and local jurisdictions to execute any transaction within the timeframe set by the Group’s financial position.”

In June 2015, the group launched a review into its strategic options led by KPMG Corporate Finance.

More recently, Clean Air Power revealed that a number of parties had expressed an interest as part of the process.

The company hit the headlines when Chelsea FC owner Roman Abramovich bought shares in it in 2014.

Ambramovich and Zara Shvidler, the wife of one of his best friends, took a 1.5 per cent stake in Clean Air Power.

After “significant institutional interest”, the company said Abramovich’s Ervington Investments and Shvidler would end up with a 1.5 per cent stake said to be worth around £350,000 each.