Here’s what happened to the Bingo (ASX:BIN) share price

Wondering why the Bingo share price is permanently frozen? The waste management company has been delisted after a successful takeover.

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It’s been an eventful year for the Bingo Industries Ltd (ASX: BIN) share price.

Following a successful takeover offer, shares in Bingo were de-listed from the ASX exchange earlier last month. The company’s removal from the official list was carried out at the close of trading today.

Let’s recap on what happened to the Bingo share price this year.

But first, a quick take on the company

Bingo is a recycling and waste management company with a network of resource recovery and recycling centres across NSW and Victoria.

The company operates more than 300 trucks in Sydney and Melbourne and is heavily geared towards the construction industry.

Since listing on the ASX in 2017, the Bingo share price had grown to become part of the S&P/ASX 200 Index (ASX: XJO).

The acquisition

The Bingo share price launched into 2021 with a bang. Media reports swirled around a potential acquisition proposal for the waste management business.

Bingo’s management confirmed the interest, acknowledging that the company had received an offer of $3.50 per share from a private equity consortium.

The consortium — headed by CPE Capital and including Macquarie Infrastructure and Real Assets (MIRA) — launched the bid valued at $2.3 billion.

At the time, shares in Bingo were trading at around $2.75 per share.

The buyout proposal was made at a multiple of almost 20 times earnings estimates.

Initially, the company acknowledged that it was considering the takeover bid. Bingo noted that the buyout proposal also involved an alternative structure involving cash and unlisted scrip.

The Bingo share price stayed below the $3.50 per share proposal as the consortium conducted its due diligence.  

Three months after the initial takeover offer, Bingo announced that it had entered into a Scheme Implementation Deed with MIRA.

The company noted that shareholders would receive $3.45 per share less any special dividend declared.

After remaining stagnant for more than 5 months, the Bingo share price was revived in mid-July as 18.26 million shares were exchanged.

The catalyst came from the company announcing that 97% of Bingo shareholders had voted in favour of the proposed takeover.

Following court approval and payment of a special dividend, shares in Bingo ceased trading on the ASX on the 16th of July.

More on Bingo

During the takeover period, Bingo released its earnings report for the first half of FY21, noting a 3.1% decline in revenue for the 6 months of $241.1 million.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) also declined 20.5% for the period to $65.2 million.

Bingo cited the poor performance on a softening of the addressable market due to the COVID-19 pandemic.

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Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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