GFL Environmental shares slide 14% as board rebuffs buyout bids

Investing.com — Shares of GFL Environmental Inc. (NYSE:GFL; TSX:GFL) dropped 14% on Tuesday after the company’s board of directors voted unanimously to reject unsolicited takeover proposals, choosing instead to remain an independent public entity.

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The Vaughan, Ontario-based waste management provider said its Special Committee of independent directors concluded a formal evaluation of the bids, determining that none aligned with the company’s best long-term interests despite offering a premium over recent trading levels.

The formal decision ended a four-month strategic review, during which GFL turned down a roughly $22 billion (approximately $52 per share) take-private proposal from a private equity consortium comprising Blackstone Inc., KKR & Co., and Energy Capital Partners, according to reporting by The Globe and Mail. GFL had also drawn interest from a rival consortium featuring Brookfield Asset Management and IFM Investors, with bidders facing a November 9 deadline for final offers, Bloomberg previously reported. The board had pushed for an offer of $58 per share or higher, but the private equity groups declined to raise their valuation.

“Following a thorough review with our independent advisors, the Special Committee concluded that while the range of valuations proposed represented a premium to where GFL currently trades, that is not reflective of the full value of our standalone strategy,” said Dino Chiesa, Chair of the Special Committee.

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Working alongside independent financial and legal advisors, the committee weighed GFL’s standalone business outlook, market conditions, and its equity stakes in its Environmental Services and Infrastructure operations against the acquisition offers.

Founder and Chief Executive Officer Patrick Dovigi reaffirmed management’s confidence in its multi-year roadmap, emphasizing that the company remains on track to hit the adjusted EBITDA margin and free cash flow conversion targets outlined during its recent Investor Day. Dovigi projected that GFL could double its free cash flow per share over the next five years.