Augean receives bid approaches

SHARE values of British hazardous waste management company Augean surged yesterday after management said the company, 27% owned by One51, had received a number of preliminary bid approaches.

Augean said the potential offers were pitched at a “significant premium” to the current share price, although it stressed that the talks are at an early stage. It has long being suspected that One51 would launch an all-out bid for the company with a current market capitalisation of £63.5 million (€79m).

The company also flagged a “considerable, sustained, upturn in activity” at its landfill sites and a strong performance in its treatment operations.

The landfill division is expected to enjoy strong second half volumes following agreements with some large customers, while the treatment division is continuing to perform in line with expectations.

“As a result of the certainty of these revenue streams the board is confident that current year market expectations will be achieved and, dependent on the outcome of further contracts currently under negotiation, could be exceeded,” it said.

One51 now owns almost 27% of the company. If it increases its stake above 29.9% it will have to make a bid for the rest of the shares.