Séché Environnement to buy Interwaste
If the deal successful, Séché Environnement will take Interwaste private.
Séché Environnement SA, a France-based company engaged in the collection, storage, and treatment of non-radioactive waste has made an offer to acquire JSE-listed waste management company, Interwaste, in a deal valued at R563 million.
In the buyout offer, Séché Environnement is offering Interwaste's shareholders R1.20 per share.
According to Séché Environnement, the offer price implies a 47.9 percent premium to the 30-day volume weighted average price of the Interwaste shares as at September 28, 2018.
Séché said the offer has been approved by Interwaste’s board of directors and independent board after valuation by an independent expert.
“With this acquisition, Séché Environnement aims to build a strong position at the heart of a highly promising region, spanning South Africa and Southern Africa, thus taking advantage of growth and transformation of its waste markets in a circular economy approach,” the company said in a statement.
Séché Environnement said the acquisition is in line with its strategy to expand in international waste markets with high growth potential and reinforce its presence in Southern Africa, serving “targeted, high value-added industrial clients in the mining, raw materials, and energy sectors.”
“Séché Environnement intends to turn Interwaste into a platform for growth in South Africa and Southern Africa, as part of a geographical, industrial and commercial diversification drive and to meet the growing need for waste recovery and treatment solutions among economic players in these regions,” it said.
Interwaste's two largest shareholders, being the investment vehicle of the founder and CEO, the Wilco Family Trust and investment fund Coro Capital Proprietary Limited, have irrevocably undertaken to sell a total of 47 percent of Interwaste’s share capital at a price of R1.20 per share.
“These undertakings illustrate the main shareholders’ confidence in the scheme of arrangement,” said Séché Environnement.
If the acquisition is successful by way of at least 75 percent of Interwaste shareholders approving it, Interwaste will be delisted from the JSE.
Séché Environnement expects the acquisition to be completed in the first quarter of 2019.