No intention to sell Bingo Industries shares: Tartak family

Bingo Industries Limited (Bingo) has issued a statement on the ASX regarding speculation about a potential sale of shares by the end of the voluntary escrow period in August.

The Tartak family, who own about 30 per cent of the $1 billion group, floated on the ASX last year after raising $440 million.

“The Tartak family’s decision not to sell reflects their strong commitment to Bingo and their view that the long-term outlook for the company and the industry remains favourable, including the expected positive impact on Bingo from the impending introduction of a Queensland waste levy, expected to be legislated in early 2019,” the statement read.

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Bingo will announce its FY18 full-year results on Tuesday, 21 August and the statement reaffirms its previously stated guidance of pro forma FY18 earnings before interest, taxes, depreciation and amortisation of about $93 million.

“I see [the statement] as very binding. I’m still a new CEO, still building credentials for myself, the last thing I would do is go against my word,” Chief Executive Daniel Tartak told the Australian Financial Review.

He added to the publication that he had been open with investors about his “five-year vision” for the company and it “seems right we continue to be long-term holders”.

Mr Tartak said Bingo Industries issued the statement in response to a “bit of market chatter and speculation”.

In March, Bingo Industries announced its half year results for the 2018 financial year, reporting strong net revenue growth of 43 per cent.

The company’s net revenue has increased to $142.4 million compared to this time last year, which according to its FY18 half-year results, reflects business momentum and increased market share.

Bingo Industries to raise $120m for acquisitions

NSW waste and recycling organisation Bingo Industries has announced it is raising $120 million to acquire businesses National Recycling Group and Patons Lane.

The proceeds will also be used to fund organic redevelopment opportunities and repay debt used to fund its Has-a-bin acquisition in September 2017.

Bingo Industries floated on the stock market earlier this year. Approximately 63.2 million new shares are expected to be issued under the entitlement offer, with shareholders also offered one share for every 5.55 held.

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The acquisitions, along with organic redevelopment of existing assets, are expected to support the company’s network capacity expansion across NSW and Victoria from 1.7 million tonnes per year to 3.4 million by 2020.

National Recycling Group (NRG) is the parent company of DATS Environment Services (DATS), Melbourne Recycling Centres and Harpers Bin Hire.

In a statement, Bingo Industries said that the acquisition will further accelerate its recent expansion into Victoria.

When commenting on the acquisition, CEO of Bingo Industries, Daniel Tartak, stated this venture will provide “compelling strategic benefits for Bingo.”

The move has led to the attainment of two new recycling centres in Victoria, and an additional recycling centre in New South Wales. Access to additional resources will be gained through DATS’ 55 trucks and 3,200 bins, in excess to Bingo’s current fleet, bins and waste infrastructure.