Shanks confirms talks to acquire Van Gansewinkel in reverse takeover

24th May 2016 09:47

(ShareCast News) - Shanks said it is on the verge of making an acquisitive approach for a larger rival, Dutch and Belgian waste collection and recycling business Van Gansewinkel, which would constitute a reverse takeover.Waste specialist Shanks has requested its shares be suspended pending further developments.After completing its "preliminary" due diligence, the London-listed company said it would shortly make an "updated, indicative non-binding proposal" to the supervisory board of privately owned Van Gansewinkel, which was not certain to be accepted.If the deal gets a go-ahead, the proposal is to finance the acquisition through a combination of new debt facilities, issuing shares to the vendors and an equity fund raising. "Given the structure and conditions in the Benelux Solid Waste market, the board believes that the acquisition of Van Gansewinkel has the potential to transform and enhance the company's position in this market," Shanks said.It said a merger of the two businesses would create a leading player in the market, with complementary strengths across all market sectors.Management stressed that they will "remain disciplined on value and will only pursue the acquisition of Van Gansewinkel if it delivers attractive returns for shareholders".Shares in Shanks were down half a penny to 80.5p before the suspension was applied mid-morning on Tuesday.