Taxi Driver Online

Yorkshire Post

September 20, 2007

Former Leeds United MD plans buyout of London eco-cab firm

KEN Livingstone's dream of filling London with "green" taxis is about to be brought closer to reality, with help from a former managing director of Leeds United.

Jeremy Fenn, the managing director of Harrogate-based Pannal, an investment company listed on the PLUS market, yesterday announced that he planned to secure a reverse takeover of KPM Autos.

KPM is poised to cash in on London Mayor Mr Livingstone's drive to rid London of cars that harm the environment.

KPM is one of two authorised main dealers of London cabs. It sells new and used vehicles, and offers after sales services. KPM plans to help old cabs become "greener", by selling products that reduce their emissions.

The directors of Pannal plan to acquire KPM for £12m, through the issue of 240m ordinary shares of 1p each at 5p per share.

Mr Fenn, who was Leeds United's managing director in the late 1990s, also revealed that plans are under way for part of the business to trade on the Alternative Investment Market (AIM) under the name of Eco City Vehicles.

It is anticipated that the acquisition will complete on October 8, and Eco City Vehicles will start trading on AIM three days later, provided the deal gets shareholder approval.

Part of the business will focus on distributing environmentally friendly vehicles, targeting local authorities, and city centre fleet owners such as supermarket chains and business users.

The business will also provide lower emission vehicle conversions.

Steven Glover, head of corporate at law firm Hammonds in Leeds, led the team advising Pannal on the transaction.

Mr Glover said last night: "Eco City Vehicles has identified a need for environmentally friendly vehicles in London as a result of environmental legislation and Ken Livingstone's vehicle emissions strategy.

"While London is KPM's main focus at the moment, it is not difficult to see other cities such as Leeds adopting similar policies in the future."
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