Interwaste declines after it’s told to close landfill site. The waste management company is currently the subject of a takeover bid by

French group Sch Environment.

Interwaste's shares fell more than 6% yesterday after it was told to close the

FG Landfill site in Midrand. The move could put a bid by French water recovery

and treatment group Sch Environment at risk.

In a statement yesterday, the waste management company said it had received a

directive from the Department of Environmental Affairs to cease operations at

the site, which has been at the centre of a tussle between Interwaste and

local residents. In February, the North Gauteng High Court ruled in

Interwaste's favour in a dispute over the validity of its licence.

Residents of the area have companied about air pollution and a stench in the

area. They blame it on the site, which previously received mining waste from

platinum miner Lonmin. Last year, the Department ordered the closure of the

site and commissioned experts to investigate its environmental impact.

Last week, the company said it had received a 1.20 rand per share offer from Sch,

a 47.9% premium to the 30-day volume weighted average share price of

Intercaste's shares as at 28 September, the trading day before it announced

that it was in talks. However, according to the offer, the scheme can be

terminated if any material adverse change occurs.

Interwaste's Facilities business, which includes the FG Landfill site, was the

only unit to underperform last year due to lower volumes arising from stagnant

growth and uncertainty over the validity of its licence to operate the site.

Interwaste said it had taken the Department's directive under review.

Its shares closed 6.3% lower at 1.04 rand yesterday.