Kier Group and Bridges Ventures are two potential bidders for waste composting plants installer and operator TEG Group.
However, tere is no certainty that that there will be a bid. The potential bidders have until 20 February to decide whether or not to make a firm offer for TEG.
Kier (www.kier.co.uk), a fully-listed construction company valued at £533 million, has businesses which include refuse collection and recycling. Bridges (www.bridgesventures.com) concentrates on investments in regeneration areas. One of the Bridges funds invested £5.5 million in TEG in June 2010, Bridges' only significant investment in a quoted company.
KPMG has been appointed to undertake a strategic review of the company. The adviser is also considering financing at the operating company and project level.
Last November, TEG gained planning permission for an Anaerobic Digestion (AD) and In Vessel Composting (IVC) plant in Dagenham. The Foresight Environmental Fund will be lead funder of the project. NEAT Biogas (70%-owned by TEG and 30%-owned by Alkane Energy) should reach financial completion of a North East Wales food waste project in the first quarter of 2012.
The TEG share price has fallen by nearly three-quarters over the past year, mainly due to delays in contracts.
Market: AIM
Symbol: TEG
Price: 6.75p
12-month high/low: 28p/6.25p
Market cap: £7.93 million
