RE: Welsh Government owns 3 per cent of TVR

RE: Welsh Government owns 3 per cent of TVR

Tuesday 16th January 2018

Welsh Government owns 3 per cent of TVR

Devolved administration bought a minority stake in 2016 when TVR committed to new factory



TVR's relationship with the Welsh Government has been simmering rather nicely for a few years now - we reported on the firm locating its production facility in the Ebbw Vale Enterprise Zone all the way back in 2016. But the link up, it would seem, goes slightly deeper than the usual back-scratching, with the administration not only chipping in a £2m loan, but also taking on a 3 per cent stake in the fledgling manufacturer.

That's according to the BBC, which reported today on Welsh Conservative unease about whether or not the public's money had been properly safeguarded. The direct investment in TVR cost the government £500,000 - chicken feed when you consider the broader £100m plan to invest in the automotive business park - but a fairly significant sum when dealing with an as yet unproven commercial enterprise.

A Welsh Government spokesperson told the BBC: "As part of our initial support package to commit TVR to manufacturing in Wales and following independent and specialist due diligence, we provided a repayable commercial loan to the company in early 2016. This was made alongside a private sector lender.


"At the same time Welsh Government also invested £500k into equity on the same terms as other investors. This gives the Welsh Government a minority stake of just below 3 per cent that will ensure the Welsh tax payer benefits from the company's successes."

Broadly speaking, state ownership of car manufacturer shares is not new or even unusual: Lower Saxony famously owns a 12.7 per cent share of the Volkswagen Group and the French government retains almost a 20 per cent of Groupe Renault, to name just two examples. But it is unusual in the UK - and virtually unheard of for the Welsh Government to take such a position.

Speaking to Autocar, TVR chairman Les Edgar, said: "It's an unusual thing for the Welsh Government to invest in a company like this - in fact, I don't think it's ever happened before - so I see it as a sign of their faith in TVR."

There's no arguing with that, and with the former Techboard building now successfully acquired for the manufacturer to move into - and TVR moving onto the first pilot builds following the launch of the Griffith - the public/private partnership will feel like it's in a good place to deliver on the taxpayer money already spent. As ever, we've got our fingers crossed.

Author
Discussion

ducnick

Original Poster:

1,765 posts

242 months

Tuesday 16th January 2018
quotequote all
A very shrewd move as it gives the Welsh government a seat at the top table to ensure the success of the company employing local people, paying local business rates and feeding into the local economy. I would imagine any suggestion by the board in a few yrs time to relocate elsewhere would come under fire from this share holder.

Jacobyte

4,718 posts

241 months

Tuesday 16th January 2018
quotequote all
jamestigerwoods said:
OMG they can't even spell Trevor correctly!
It's Welsh you 'tard.

ZX10R NIN

27,494 posts

124 months

Tuesday 16th January 2018
quotequote all
Seems a very smart move by being able to have a say in the way a local business that'll be employing local people.

Wacky Racer

38,099 posts

246 months

Tuesday 16th January 2018
quotequote all
ZX10R NIN said:
Seems a very smart move by being able to have a say in the way a local business that'll be employing local people.
A local firm for local people.....(To coin a phrase)

BarcelonaLewis

150 posts

135 months

Tuesday 16th January 2018
quotequote all
A 3% shareholding will give them a negligible, at best, voice at the table. 51% would, as long as they have voting shares, but they're a long way from that.

leef44

4,359 posts

152 months

Tuesday 16th January 2018
quotequote all
Well done to the Welsh Government clap

The first couple of years of TVR starting up shop is going to be very tough and cashflow is not going to be easy. They can do with all the support they can get.

It is small beer but it sends the right signals.

Wishing TVR lots of success and that they build good quality cars for the first set of owners. beer

HustleRussell

24,602 posts

159 months

Tuesday 16th January 2018
quotequote all
Let’s hope it proves to be a good investment

FredClogs

14,041 posts

160 months

Tuesday 16th January 2018
quotequote all
Maybe the welsh government could build a world leading race circuit somewhere?

Oh wait a minute...

Yipper

5,964 posts

89 months

Tuesday 16th January 2018
quotequote all
Wales is one of the poorest countries in the world and it's easy to see why. A tiny share in a tiny niche fossil-fuel startup is not the wisest investment for public cash. Wouldn't be a surprise if someone handling the Welsh purse strings had some kind up of direct or indirect connection to TVR.

limpsfield

5,871 posts

252 months

Tuesday 16th January 2018
quotequote all

“ TVR chairman Les Edgar, said: "It's an unusual thing for the Welsh Government to invest in a company like this”

Should have said “it’s not unusual” regardless of the facts.

leef44

4,359 posts

152 months

Tuesday 16th January 2018
quotequote all
limpsfield said:
“ TVR chairman Les Edgar, said: "It's an unusual thing for the Welsh Government to invest in a company like this”

Should have said “it’s not unusual” regardless of the facts.
Yes, it did make me cringe. Almost like he's saying "pfftt..I'll be surprised if I can make this work yet alone the confidence from the Government!"

ElectricPics

761 posts

80 months

Tuesday 16th January 2018
quotequote all
Yipper said:
Wales is one of the poorest countries in the world and it's easy to see why. A tiny share in a tiny niche fossil-fuel startup is not the wisest investment for public cash. Wouldn't be a surprise if someone handling the Welsh purse strings had some kind up of direct or indirect connection to TVR.
Now I'm new around here but I see that you have a bit of a reputation, to say the least, for odd posts. But, discounting the poorest country bit, which is clearly nonsense as Wales isn't a country at all, and as a confirmed cynic especially when the public gravy train is involved, I wouldn't be at all surprised if there was some shenanigans going on with that investment. After all, what usually happens when government invests in private enterprises?

ruaricoles

1,178 posts

224 months

Tuesday 16th January 2018
quotequote all
Err, I think you’ll find Wales is very much a country!

Hope it turns out to be a good investment.

Jimbo.

3,941 posts

188 months

Tuesday 16th January 2018
quotequote all
A Labour Govt. owning a stake in TVR? That’ll get some folk here in a right mess!

leef44

4,359 posts

152 months

Tuesday 16th January 2018
quotequote all
Jimbo. said:
A Labour Govt. owning a stake in TVR? That’ll get some folk here in a right mess!
But it would be interesting if Jeremy Corbyn has put a deposit down for one of the first cars biggrin

Will94

50 posts

151 months

Tuesday 16th January 2018
quotequote all
limpsfield said:
Should have said “it’s not unusual” regardless of the facts.
Very good!

ElectricPics

761 posts

80 months

Tuesday 16th January 2018
quotequote all
limpsfield said:
“ TVR chairman Les Edgar, said: "It's an unusual thing for the Welsh Government to invest in a company like this”

Should have said “it’s not unusual” regardless of the facts.
clap

V8OW

1,615 posts

196 months

Tuesday 16th January 2018
quotequote all
ElectricPics said:
Now I'm new around here but I see that you have a bit of a reputation, to say the least, for odd posts. But, discounting the poorest country bit, which is clearly nonsense as Wales isn't a country at all, and as a confirmed cynic especially when the public gravy train is involved, I wouldn't be at all surprised if there was some shenanigans going on with that investment. After all, what usually happens when government invests in private enterprises?
rolleyes

V8OW

1,615 posts

196 months

Tuesday 16th January 2018
quotequote all
I really hope this ends up being a success as I'd love TVR to prosper again (and even better in Wales!).

Albeit a small investment, the 500k makes a nice change from the repayable funding or grants that more often than not end up going to waste. Fingers crossed it pays off.

CPWilliams

235 posts

82 months

Tuesday 16th January 2018
quotequote all
Giving TVR a valuation of circa £17 million. Difficult business, and brand, to value I bet.