The Tox Free Solutions Limited (ASX: TOX) share price has been one of the best performers on the market on Monday.
In afternoon trade the waste management company's shares are up 20% to $3.41.
What happened?
It wasn't just AWE Limited (ASX: AWE) that received a takeover offer this morning, Toxfree has also been approached by an industry peer.
According to today's release, Cleanaway Waste Management Ltd (ASX: CWY) has tabled a cash offer of $3.425 per share, valuing Toxfree at approximately $671 million.
Furthermore, under the terms of the proposal, Toxfree shareholders will still be entitled to receive an interim 5 cents per share dividend if they continue to hold their shares until they go ex-dividend.
The Toxfree board has unanimously recommended that shareholders vote in favour of the scheme of arrangement, believing that the proposal is compelling.
What now?
I would agree with the Toxfree board on this one. I believe that Cleanaway's offer is more than fair.
Cleanaway shareholders also appear to see value in the deal. Its shares have still not commenced trade today, but pre-trading points to its shares eventually opening almost 3% higher.
Its shareholders may see this as a great way of combating the emerging waste management force Bingo Industries Ltd (ASX: BIN). Bingo's shares have been on a tear since landing on the ASX at $1.80 per share in May. Its shares are now almost 40% higher at $2.51.
