An acquisition & a buyback for Bingo (ASX: BIN)
Stock
Bingo (ASX: BIN) $1.64 as at 28/02/2019
Event
Waste management company Bingo (ASX: BIN) continues its rally today off all-time lows set last week, today adding over 13% on the back of ACCC approval of the Dial-a-Dump acquisition. The stocks panic low of $1.17 came on the back of revised full year guidance which we wrote about here. Now, the stock trades around 40% higher than the low.
The ACCC has spent the last few months pondering the take over which Bingo pre-emptively raised capital for at $2.45 in August last year. Today they approved the deal provided one asset, the Banksmeadow processing plant, is divested.
Investors also got the sugar hit of an on-market buyback launch as well for Bingo. The company plans on purchasing up to $75m of stock as a result of the required divestment.
The end result is Bingo now leads the market in terms of landfill space in NSW and commercial & building waste volumes, as well as adding a contaminated waste facility to its assets while aiming for $15m of costs synergies in the combined group.
Bingo (ASX: BIN) Chart
Market Matters Take/Outlook
