Tevva re-engages with investors after merger plans collapse
Electric lorry maker Tevva vowed to “emerge even stronger” following the collapse of a planned merger with ElectraMeccanica, after the US firm alleged incurable breaches.
The deal, which would have enabled Tevva to scale up its production in the UK, European and US markets, fell through earlier this month when ElectraMeccanica announced it had terminated the agreement.
Tevva described the decision as abrupt and said it was “deeply disappointed” that it had no opportunity to respond to the company’s claims before it went public.
It said it had re-engaged with investors and public companies looking to merge with the electric vehicle builder.
Referring to the collapse of the deal, Tevva said it had given “full and open access at every point in the process to ElectraMeccanica’s advisors and management, with full financial due diligence prior to signing the definitive agreement and senior members of the ElectraMeccanica executive team in residence for many weeks at Tevva’s UK facility.”
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It added: “Tevva strongly refutes the basis under which the planned merger was terminated, with no regard to the agreement termination protocol, and will be seeking recourse through due legal process.
“Tevva will shortly go public on its rebuttal of the ElectraMeccanica claims via the company’s advisors.
“The termination of the deal has galvanised the entire Tevva team and board and the company has immediately laid down plans to regroup from this event and emerge even stronger.”
The company said it had restructured its leadership team, with former director David Roberts assuming the role of CEO and Ken Scott becoming MD, under the chairmanship of Ian Harnett.
ElectraMeccanica previously said the agreement with Tevva was terminated following “a unanimous decision of ElectraMeccanica’s board of directors based on additional information that came to light following execution of the arrangement agreement.”
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