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TOX - Tox Free Solutions News Story

A$3.42 0.0  0.0%

Last Trade - 11/05/18

Sector
Industrials
Size
Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £282.3m
Position in Universe th / 1911

BREAKINGVIEWS-Australian waste deal may scrap shareholder value

Mon 11th December, 2017 4:25am
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own.) By Quentin Webb HONG KONG, Dec 11 (Reuters Breakingviews) - Trash hauler Cleanaway is buying rival Tox Free for about $625 mln, including debt. The deal is prudently funded with equity, and promises sufficient synergies to cover the premium being paid. Unless more savings can be found, though, the high price implies a rubbish return. Full view will be published shortly. On Twitter https://twitter.com/qtwebb CONTEXT NEWS - Australia's Cleanaway Waste Management said on Dec. 11 it would buy smaller rival Tox Free Solutions for A$671 million, or about $504 million. The friendly, all-cash takeover values Tox Free at A$3.425 per share, a near-21 percent premium to the previous closing share price. - Cleanaway said the deal would generate A$35 million in annual synergies, and would be "strongly accretive" to earnings and free cash flow, both on a per-share basis. Cleanaway will sell A$590 million of shares to fund the deal. It is assuming A$157 million of net debt, meaning the deal values Tox Free at A$831 million on an enterprise-value basis. - Tox Free shares rose 19.8 percent by early afternoon in Sydney, to A$3.40. - For previous columns by the author, Reuters customers can click on WEBB/ - SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS: http://bit.ly/BVsubscribe <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Australia's Cleanaway Waste Management to buy rival Tox Free Solutions urn:newsml:reuters.com:*:nL3N1OA0GG Cleanaway presentation http://www.asx.com.au/asxpdf/20171211/pdf/43q1q0bvtpxq7c.pdf Cleanaway statement http://www.asx.com.au/asxpdf/20171211/pdf/43q1pyjwhf103g.pdf ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Jeffrey Goldfarb and Katrina Hamlin) ((quentin.webb@thomsonreuters.com;)(Reuters Messaging:)(quentin.webb.thomsonreuters.com@reuters.net)) Keywords: TOX FREE M&A/BREAKINGVIEWS
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