Boyers appointed to lead sale of TEG
TEG, the environmental technology company, launched a formal sale process today.
The AIM-listed Preston-based company, which said on Monday it had received a number of approaches has appointed Manchester-based dealmaker Jonathan Boyers of KPMG Corporate Finance to run the process.
A statement to the stock market said: “The board has received a significant number of preliminary expressions of interest from potential purchasers and as a result the board has decided it should conduct a formal sale process in order to explore these.”
TEG which has pioneered technology to turn household waster into energy and has won a number of contracts with local authorities, said that while
it has a secure future as an independent business, it could benefit by being part of a larger organsiation with more financial power.
It added “The board recognises that there is potential interest from organisations that could help the business by providing investment to strengthen the company’s balance sheet and provide assistance to secure future projects.
“They believe that this support could significantly accelerate the Company’s growth to take advantage of the opportunities in the waste market.”
In addition to the formal sale process TEG said that it is also considering a “number of other” alternative investment structures including investment at the operating company and project level and is in discussion with other potential investors.
One party which will not be making a formal bid is investor Bridges Ventures, which owns around 20% of the company’s shares.
On Monday TEG said that KPMG, during a strategic review, had had some early discussions with both Bridges and Kier Group, which could lead to an offer being made.
Shares were up 4.7% to 8.25p.
