Waste management minnow rejects billionaire’s takeover offer
Thursday, May 1, 2008/
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.
Be honest about your situation: How vulnerability helps businesses thrive Sue Parker DARE Group founder
Own it: The 10 things you need to do to manage your personal brand Lisa Stephenson Who Am I Projects founder
Six invaluable lessons: What 20 years in aged care taught me about being an entrepreneur Natasha Chadwick NewDirection Care founder
An entrepreneurial superpower: Eight tips to help develop resilience Adala Bolto ZADI Training co-founder
Going through a lull? Five areas you should invest in when sales drop Tamara Alaveras and Sonia Majkic 3 Phase Marketing co-founders
Stop telling us how busy you are, it's boring and charmless Ian Whitworth Scene Change co-founder
Blandification™ and the state of modern branding Jeffrey Oley The Offices co-founder
Why you should find the right role for the right person — not the other way around Bruce Stronge Outfit founder