Australian waste management and recycling company Bingo Industries on Tuesday said it would buy rival Dial A Dump Industries for an enterprise value of $577.5 million.
Bingo also reported results for its first full year of operation as an ASX-listed company, with statutory net profit of $38 million, up 91.6 per cent and revenue up 44.5 per cent to $303.8 million.
The group declared a final dividend of two cents a share, fully franked.
Bingo said the Dial A Dump deal would be funded by a $425 million entitlement offer and a $200 million scrip consideration to the sellers of Dial A Dump Industries at $2.54 per new ordinary share.
The Dial A Dump deal comprises $377.5 million in cash and $200 million in Bingo shares to be issued to Dial A Dump shareholders, Bingo said in a statement.
Upon completion, Ian Malouf, the largest Dial A Dump shareholder, will join the Bingo board.
Bingo shares were in a trading halt on Tuesday pending completion of the capital raising to fund the deal.