Bids for NTR’s Greenstar to close with up to three bids in prospect

BIDS for NTR’s Greenstar waste management business are set to close today with up to three or more bids in prospect.

The Irish Examiner understands that One51, owners of 26% of NTR, is in the bidding as well as Bord na Mona. Thornton’s Waste Disposal could be a third potential bidder.

None of the potential bidders have confirmed an interest in taking over the NTR waste operations.

The group which is traded on the grey market has been expanding its US alternative energy business involving solar, wind and ethanol, to meet growing demand for alternative energy sources.

Greenstar operations had a turnover €170m last year and has an estimated market value of €250m.

The level of bidding interest could push that price higher, but with markets flat at present the €250m might also prove to be on the high side.

In its statement, which was non-committal, NTR suggests that if the price isn’t right the group could end the process until a more opportune time.

NTR is this country’s largest player in waste management in Ireland and the sale of its Irish operations would enhance any Irish player’s role in a market that expanded rapidly during the boom years. One51 stands to gain either way. If it buys the business it will add to its environmental operations, a crucial part of the group’s on-going strategy.

On the other hand if it is sold to a third party, the Lynch-led group will be entitled to 26% of the selling price given its NTR stake.