The new company, renamed Eco City Vehicles, has cancelled its PLUS listing and begun trading its shares on AIM.

Pannal acquired KPM for £12 million, satisfied by the issue of 240 million ordinary shares at 5p per share. An issue of a further 20 million ordinary shares raised an additional £1 million for the new company, the net proceeds of which will be used for working capital.

KPM Autos is one of the two authorised dealers of London taxis, selling new and used vehicles and offering after-sales service.

Reflecting the name change, the company now plans to extend its product lines by distributing environmentally friendly vehicles through its existing channels to market. Eco City Vehicles will target local authorities, urban vehicle fleet owners and other business users.

Peter DaCosta, the company’s new CEO, comments: ‘[We believe] that in the coming years, due to tight environmental legislation, the opportunity for more environmentally friendly vehicles within Greater London will be considerable.

‘The combination of KPM’s expertise in the London taxi market and the added drive and experience of Pannal’s directors will bring valuable benefits to customers and shareholders.’