Toronto-based waste management company GFL Environmental Inc. is ruling out a sale of the entire company to private buyers, but is considering running an auction for its environmental services division.to assess two buyout offers – one for the entire business and another for the environmental services unit.
However, Mr. Dovigi said a sale of GFL’s environmental services division, which offers liquid waste management and soil remediation services, was a possibility, adding that the proceeds from such a sale could be used to pay down debt. GFL became vulnerable to buyout offers in recent months because its shares sold off amid concerns about its debt load. The company has expanded through debt-fuelled acquisitions and interest rates have remained elevated in the United States, which is where GFL issues most of its capital. Investors had grown worried about borrowing costs and the potential to fund future acquisitions.
As concerns about the debt load mounted, GFL’s shares traded down and the company lost its premium valuation relative to rivals, which trade around 15 times EBITDA. However, news of a potential sale gave GFL’s stock a bump and since the start of June the company’s shares have gained 25 per cent on the Toronto Stock Exchange.
Canada Canada Latest News, Canada Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »
Source: globeandmail - 🏆 5. / 92 Read more »