The board of small Sydney waste management company DoloMatrix has rejected a takeover offer from Brisbane-based waste giant Transpacific, which is controlled by billionaire Terry Peabody.
Transpacific has offered 30 cents a share for DoloMatrix, which has a chemical processing and recycling division called Chemsal, a hazardous waste division called BCD, and also owns a technology called Dolocrete, which sets hard when added to waste and allows it to be treated safely and cheaply. The offer values the company at $41 million.
But DoloMatrix chairman Iain Thompson has hit back, saying Transpacific’s offer grossly undervalues the company. “Transpacific must believe the company is worth considerably more, having participated in a placement at 55 cents cash per share in September 2007,” Thompson said in a statement to the ASX. “The sharemarket appears to agree, given the DoloMatrix share price has consistently traded above the value of Transpacific’s offer since that was announced.
Peabody is used to getting what he wants when he makes an acquisition – the company made 47 separate purchases in 2007 and followed that up with another 12 in the first half of 2007-08.
Transpacific said yesterday it would not raise its offer, but Peabody might have to rethink that stance and dig a bit further into his pockets if he is to get a recommendation from the DoloMatrix board.