Shanks in landfill deal with Hanson

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The Independent Online
SHANKS & McEwan, the waste management group, has acquired almost 21 million cubic metres of landfill space in the South-east from Hanson in a deal worth pounds 20.2m.

Shanks is issuing 8.73 million ordinary shares to Hanson, representing 4.75 per cent of its enlarged share capital, at 206p a share, and is taking on pounds 2.2m of agricultural restoration liabilities.

Shanks' shares closed up 1p at 209p. Hanson has said it did not regard the shareholding as a short-term investment.

Hanson took a 20 per cent stake in Shanks in 1986, when it sold its London Brick subsidiary's waste disposal interests, although it sold that two years ago at a price equivalent to 256p a share. This deal arises from rights granted at that time.

The four sites being acquired are former London Brick clay quarries in Bedfordshire, Cambridgeshire and Buckinghamshire. Of the landfill being acquired, 9.04 million cubic feet has planning permission for waste disposal, bringing Shanks' reserves with planning consent up to 85.2 million cubic feet.

It has a further 15.5 million cubic feet without consent, and 53.3 million cubic feet of options on land without consent - including 3.77 million granted yesterday by Hanson, which expires in 1997.

Shanks believes it is the largest owner of landfill space in Britain. It says recent deals have shown a 'substantial increase' in the price of sites.

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