Wasteco Group Ltd ---WCO

[winner69]

Have they acquired something?

Consolidation in industry inevitable and one day Wasteco might be consolidated as well.

http://nzx-prod-s7fsd7f98s.s3-websit...165/400156.pdf

[silverblizzard888]

The extra $4.32million combined with offer of shares in new acquisitions should allow them another $5-7 million in more acquisitions unless they decide to spend a good portion on buying equipment to grow existing businesses. It should help propel the business revenues for FY24 to $50-60 million, which would be some good growth. Expecting another capital raise in another 6 months time after they use all the money to further their growth and align new acquisitions with the existing main business structure and brand. My valuation on a per share basis is about 5.6 cents. They would need to show stronger improvement in operating profit and cashflow to warrant a higher value in my books.

[barney]

They did signal a share placement plan for existing shareholders a couple of months back so it could be something to do with that.

[bull....]

They did signal a share placement plan for existing shareholders a couple of months back so it could be something to do with that.

looks more like an aquisition to me , they may tie the sp plan in with the announcement

[whatsup]

looks more like an aquisition to me , they may tie the sp plan in with the announcement

I thought that the S P ann was to be at the AGM.

[Entrep]

Will be an acquisition by WCO

[silverblizzard888]

Probably one last acquisition and capital raise before the AGM, might as well get the shareholder approval while everyone's gathered in one spot.

[Southern Lad]

The Companies Office details Bond Contracts Ltd is currently owned half each by H W Richardson Ltd and Trojan Holdings Ltd (the later being the Davies Family of Queenstown). Both very astute business families who hold onto good businesses so my assumption is that either the business faces uncertain times or the price was too way good to refuse. No suggestion the vendors are taking part of the purchase price in WatseCo scrip.

The announcement on Friday raises the risk of the contracts not being renewed in 2027. There are plenty of large players in the Waste collection and transfer station operator businesses (including Envirowaste and Waste Management) so any contract is likely to be very competitive. Local Authorities generally have robust and transparent procurement processes, so unless there are renewal rights in the current contract it’s difficult to see WasteCo screwing the scrum with early engagement. Further, they’ve told their competitors what they are up to. Hopefully WasteCo has a contingency plan if the contracts aren’t renewed and there is some high quality plant that can be readily redeployed and they’re not just buying goodwill on a contract that has less than four years to run.

ps - Southlanders are very parochial.

[silverblizzard888]

Raising $3m for acquisition in invercargil company BCL's waste collection business as reference above by Southern Lad its a purchase from Bond Contract ltd

Total acquisition price is $8.775m. Rasing at 6.5 cents, $2.5m to shareholders and $0.5m to private.


About the business:

"The business being acquired provides waste collection services and operates transfer stations in Southland under a contract with the Invercargill City Council, Southland District Council and Gore District Council (together referred to as the 'WasteNet' Councils). This contract runs until 30 June 2027. WasteCo intends to proactively engage with the WasteNet Councils and participate in subsequent negotiations and tender opportunities for the WasteNet Councils contract beyond 2027."

[winner69]

Raising $3m for acquisition in invercargil company as reference above by Southern Lad its a purchase from Bond Contract ltd

Rasing at 6.5 cents, $2.5m to shareholders and $0.5m to private.

Total acquisition price is $8.775m

About the business:

"The business being acquired provides waste collection services and operates transfer stations in Southland under a contract with the Invercargill City Council, Southland District Council and Gore District Council (together referred to as the 'WasteNet' Councils). This contract runs until 30 June 2027. WasteCo intends to proactively engage with the WasteNet Councils and participate in subsequent negotiations and tender opportunities for the WasteNet Councils contract beyond 2027."

It’s a $8.7m acquisition, a $3m cap raise so balance coming from debt

Did raise $4m a few months ago for the Cleanway acquisition

Next Balance Sheet will look interesting

Sorry …was in reply to your abbreviated post which you added to with these details