ONE51, whose second attempt to snare SWS ended in failure last week as rival bidder Ion Equity snapped up the Bandon-based company for €110m, is mulling splitting its business into two — before launching on the grey market next year.

Under tentative plans being considered by One51’s chief executive Philip Lynch, one arm of the conglomerate could comprise of businesses in which it has 100% holdings. These include the Irish Pride bakery, TechRec, an electrical recycling company, and SITA Environmental, a hazardous waste disposal firm.

The other part would be made up of its private equity-type investments, including its 26% interest in NTR, the toll roads, wind energy and bio-energy conglomerate, and its half share in Greenore Port in Co Louth.

Sources close to the company say that such a structure would make it easier to source cheap financing, secured against ringfenced assets.

It would also make it possible for One51 to raise equity at subsidiary level.

With Lynch’s ambitions to buy SWS, which has interests in waste, wind energy and business services, now in tatters, market watchers are waiting to see if he will launch a full-blown takeover bid for Augean, the AIM-listed Yorkshire hazardous waste company.

Lynch built up a 23% stake in Augean on the cheap in the wake of a profit warning from Augean in recent months and the departure of John Huntington, the waste firm’s chief executive.

Observers believe the business could be merged with SITA Environmental and another hazardous business it owns in Manchester.

Lynch, the architect behind the growth of food group IAWS plc before he handed the reins over to Owen Killian in 2003, has long been waiting for a clincher deal for One51, which would act as a precursor to a full stock market flotation of the group.

One51, formerly known as IAWS Co-op, previously held a stake in IAWS plc.

It raised €120m earlier this year in convertible loan notes to fund acquisitions. Some €34m of that was used to subscribe to NTR’s recent €150m equity raising.