<article>Cleanaway Waste Management said on Monday it would buy smaller rival Tox Free Solutions for A$3.425 per share in cash, valuing Tox at A$671 million ($503.72 million) on a diluted basis.</article>

Cleanaway Waste Management said on Monday it would buy smaller rival Tox Free Solutions for A$3.425 per share in cash, valuing Tox at A$671 million ($503.72 million) on a diluted basis.
The Cleanaway offer is at a 20.6 percent premium to Tox&#8217;s closing level on Friday of A$2.84.
Under the deal, Tox shareholders will be entitled to receive an interim dividend of A$0.05 per share in fiscal 2018, and Tox expects to declare and pay a fully franked special dividend on or shortly before the implementation of the deal.
In a separate statement, directors of Tox said they unanimously recommended that shareholders vote in favour of the Cleanaway offer.
&#8220;The transaction is expected to deliver approximately A$35 million in annual synergies and be strongly accretive for earnings per share and free cash flow per share when integration is complete,&#8221; said Cleanaway Chief Executive Officer and Managing Director Vik Bansal. To fund the acquisition, Cleanaway said it would launch an A$590 million entitlement offer, offering one new share for every 3.65 existing shares held, at A$1.35 per new share.
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Reuters

Cleanaway Waste Management to buy smaller rival Tox Free Solutions for A$3.425 per share in cash, valuing Tox at A$671 million ($503.72 million) on a diluted basis.

Australia: Cleanway Waste Management to buy smaller competitor Tox

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