Waste management giant GFL rules out sale of whole company, plans auction of a division instead

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 49 sec. here
  • 49 min. at publisher
  • 📊 Quality Score:
  • News: 187%
  • Publisher: 92%

Canadian News Nyheter

Canada News,Breaking News Video,Canadian Breaking News

As part of its second-quarter earnings report, CEO Dovigi declares GFL ‘not a seller’ of the company

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.

 

Tack för din kommentar. Din kommentar kommer att publiceras efter att ha granskats.
Vi har sammanfattat den här nyheten så att du kan läsa den snabbt. Om du är intresserad av nyheterna kan du läsa hela texten här. Läs mer:

 /  🏆 5. in SE

Sverige Senaste nytt, Sverige Rubriker

Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.

Waste Management stock falls after disappointing earningsWaste Management (WM) shares are sliding after the company missed its second quarter earnings estimates. Market Domination Hosts Julie Hyman and Josh Lipton ...
Källa: YahooFinanceCA - 🏆 47. / 63 Läs mer »

Nuclear industry deserves praise for the way it searched for waste-disposal siteCredit where credit is due. The way that the nuclear sector is stewarding its waste in Canada is its strength, not its weakness
Källa: globeandmail - 🏆 5. / 92 Läs mer »