TEG Group in sale talks
TEG Group, the Chorley-based green technology firm which develops organic composting and energy plants, is in talks with potential buyers.
The company issued a statement last night noting a recent rise in its share price, and confirmed that it had appointed KPMG Corporate Finance to complete a strategic review of its options, including a potential sale.
Shares rose more than 50% in early trading this morning to just over 10p. The company has a market value of around £12m.
As part of this review, it said KPMG had held preliminary discussions with London-based social enterprise fund Bridges Ventures and with contractor Kier Group.
It added that “discussions are at a very early stage and there can be no certainty that an offer can be made”.
The firm said that it was also considering alternative investment structures, which would allow it to take on investment for individual projects or its own operating company, and said it had spoken to other potential investors about this?
“The board, which is being advised by KPMG Corporate Finance and Brewin Dolphin, will make a further announcement when appropriate,” it said.
Following its announcement, both Bridges Ventures and Kier Group will now have to decide whether to make an offer or not by 5pm on February 20.
TEG Group is currently building anaerobic digestion plants to handle waste streams in Dagenham and in North Wales to digest food waste.
It also recently commissioned a plant at Perth in Scotland. Its last interim results for the six months to June 30, 2011, showed that pre-tax losses doubled to £798,000 despite a 6% increase in revenues to £9.3m.
Bridges Ventures is a social enterprise fund which was set up by Apax Partners founder Sir Ronald Cohen.
Other investments it has made to date include a stake in the £31m Chill Factore leisure scheme and the Hoxton Hotel in London opened by Pret a Manger co-founder Sinclair Beecham.
