Steve and Ian tell me that TPI looked at TOX some time ago. Not sure why they didn't have a go at it. If they tried now they would not succeed. I can count associates that own about/more than 50% of the company in aggregate and it's unlikely to be sold by them. There would be a lot of people jumping to their defence and TPI have such a poor reputation with some waste industry customers that one could also get a helping hand from them with a defence. TPI may well be looking at them again but I very much doubt that they'd get more than 25%. Which would be enough to be a problem but not enough to change the management or strategic direction. Also:There's fund buying that hasn't been satisfied.
In all TPI would have to pay a PE premium to their share price to get the company and therefore it would be EPS negative for them for a couple of years. The market wouldn't like this because TPI's been buying businesses for 5x EBITDA (or thereabouts) and using 20x PE scrip. Nice little eps adders.
My thanks again to those who've been selling me the TOXOs.
TOX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
