AgCert shares surge amid takeover bid

SHARES in AgCert International, the greenhouse gas emissions trading company, shot up 40% on the foot of a takeover offer.

The company, which is listed on the London stock market, said its market value rose to £129 million (€190m) as its share rose 22p to 76p. The shares are still trading at a significant discount to its 2005 flotation price of 120p.

“The board of AgCert notes the recent rise in the company’s share priceand confirms that it is in early stage discussions with a party that may or may not lead to an offer being made for the entire issued share capital of AgCert,” the company said.

AgCert did not identify the potential bidders or how much the offer might be.

The company was formed in 2002 to produce and sell reductions in greenhouse gas emissions from agricultural sources on an industrial scale. The carbon offsets are intended to satisfy the requirements of the Kyoto Protocol and be capable of being traded on the European cap and trade system, the European Union Emissions Trading Scheme.

The company has arrangements with more than 500 farms to produce the offsets and has agreed to sell them on to companies that are heavy emissions producers, like ESB and BHP Billiton.

Earlier this year, AgCert said it was looking to raise up to €50m in new funding to complete it business plan.

In the first half of 2006, AgCert made a loss of €4.7m on negligible revenues. However, it said in a recent trading update that a re-negotiation of some contracts should add between €53m and €95m in gross revenues to the company.

An update from the company is expected when it releases 2006 financial results later this month.