The Australian Competition and Consumer Commissionâs (ACCC) has made an announcement stating that it is not going to oppose BINGO Industries Limitedâs (ASX: BIN) proposed acquisition of Dial A Dump Industries (DADI). This announcement came after ACCC accepted a court-enforceable undertaking from BINGO for the divestment of its recycling facility in Banksmeadow which is located in New South Wales.
Following this news, the share price of the company increased by 15.172% as on 28 January 2019 (AEST 1:43).
BINGO is a publicly listed waste management company which is working in New South Wales (NSW) as well as in some parts of Victoria. Whereas, Dial-a-Dump is a privately-owned company which provides building and demolition (B&D) waste collection and processing services. As BINGO is one of the leading players in Sydney B&D collection and processing, the acquisition of Dial A Dump Industries by BINGO has raised a number of significant concerns as it was indicated that this acquisition might substantially lessen the competition in the B&D waste processing Industry.
However, after taking into consideration the divestiture undertaking, ACCC has now concluded that it is unlikely that the proposed acquisition would lessen competition in any market.
The undertaking requires BINGO to divest its Banksmeadow waste processing facility to an ACCC-approved purchaser. The undertaking provides that the land may be purchased or leased on a long-term basis and if the purchaser enters into a lease of the land, BINGO will have to appoint an independent lease manager to operate the lease independently of BINGO. BINGO must also, in certain circumstances, enter into a tipping option agreement which will be approved by the ACCC. The agreement will allow the purchaser to tip at BINGOâs landfills for a minimum of seven and a half years. It must also appoint an independent auditor to monitor BINGOâs compliance with the undertaking, and an independent manager for the facility from the completion date of the proposed acquisition until Banksmeadow is divested to an approved purchaser.
BINGO Industries has hailed the ACCCâs decision of not opposing the proposed acquisition and its Managing Director and Chief Executive Officer Daniel Tartak described this decision as an important step in realising BINGOâs vision and its strategy of vertically integrating its business and diversifying into new markets.
On 28 February 2019, the company made an announcement stating that its Board has approved an on-market buy-back of up to $75 Mn of its ordinary shares. The buy-back is expected to start on 15 March 2019 and it will be conducted within the â10/12 limitâ in accordance with the Corporations Act 2001 (Cth).
Now, letâs have a glance at the BINGO Industries Limitedâs stock performance and the return it has posted over the past few months. The stock is trading at a price of $1.672 with a market capitalization of ~$844.47 Mn as on 28 February 2019. The counter opened the day at $1.800 and reached the dayâs high of $1.850 and touched a dayâs low of $1.590 with a daily volume of ~24,566,844. The stock has provided a Year Till Date return of -20.55% & also posted returns of -54.411%, -0.34.68% & -29.27% over the past six months, three & one-months period respectively. It had a 52-week high price of $3.270 and touched 52 weeks low of $1.170.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
With the pandemic continuing to affect the globe, healthcare companies are evaluating their lead compounds for COVID-19 treatment. Future revenue for these stocks depends on the probability of launching an approved treatment in the market.