Director dealings: Shanks chair buys ahead of merger

Shanks Group chairman Colin Matthews has grabbed a chunk of shares in the company to tie his interests in with shareholders as the waste specialist edges closer to a transformational merger with a Dutch rival.

Matthews, the ex Heathrow Airport and Severn Trent chief executive who took the chair in April, bought 100,000 shares in Shanks at a price of 114.5p.

Shanks is currently trading close to multi-year highs as it finalises details over the agreed reverse takeover of Netherlands-based van Gansewinkel Groep (VGG).

At the end of September, having first confirmed talks in May, Shanks agreed the final terms of the deal, agreeing to pay cash and share to VGG's ultimate beneficial shareholders totalling €482m to acquire the business on a cash- and debt-free basis.

The combination, which has received support from major shareholders in both companies and positive advice from the relevant works councils, is expected to create one of the largest and most advanced waste-to-product business in the world, achieving annual cost synergies of roughly €40m after three years together and contribute significantly to earnings in the second full financial year following the merger.

"This is a transformational deal with a compelling industrial rationale that is fully aligned with our growth strategy," said Shanks CEO Peter Dilnot.

"The merger has a clear strategic benefit for the Shanks Group, and the board believes that the resulting commercial opportunities and synergies will deliver attractive long term financial returns that should significantly enhance shareholder value."

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Shanks Group (SKS)
Director name: Matthews,Colin
Amount purchased: 100,000 @ 114.50p
Value: £114,500.00

Nostra Terra Oil & Gas Co (NTOG)
Director name: Ainsworth,Kristian (Ewen)
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Qinetiq Group (QQ.)
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Amount purchased: 85 @ 235.29p
Value: £200.00

Qinetiq Group (QQ.)
Director name: Mellors,David
Amount purchased: 85 @ 235.29p
Value: £200.00

Prudential (PRU)
Director name: Foley,John W.
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Value: £186.74

Prudential (PRU)
Director name: Nicandrou,Nicolaos
Amount purchased: 12 @ 1,436.50p
Value: £172.38

National Grid (NG.)
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Amount purchased: 15 @ 1,045.20p
Value: £156.78

Consort Medical (CSRT)
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Waterman Group (WTM)
Director name: Steele ,Alex
Amount purchased: 167 @ 89.88p
Value: £150.10

Waterman Group (WTM)
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Amount purchased: 167 @ 89.88p
Value: £150.10

National Grid (NG.)
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Value: £146.33

National Grid (NG.)
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Value: £125.42

Meggitt (MGGT)
Director name: Green,Philip Ernest
Amount purchased: 27 @ 464.40p
Value: £125.39

Meggitt (MGGT)
Director name: Young,Stephen G
Amount purchased: 27 @ 464.40p
Value: £125.39

Meggitt (MGGT)
Director name: Webb,Doug
Amount purchased: 27 @ 464.40p
Value: £125.39

Foreign And Colonial Inv Trust (FRCL)
Director name: Knapp,Edward
Amount purchased: 18 @ 515.34p
Value: £92.76