After news that the first bids for the company's environmental business unit exceeded expectations, GFL Environmental Inc.'s (GFL, Financial) shares moved higher Wednesday. More than 25 companies showed interest in the division; proposals now range in value from $7.2 billion to $8 billion, according to CTFN, which quoted a source familiar with the subject.
The unit was supposed to bring in between $6.5 billion and $7 billion, but the higher than projected bids point to robust market demand for GFL's environmental offerings. Reflecting a trend observed in comparable high-profile acquisitions, the company had set an initial offer deadline for the end of October and attracted interest from both strategic and financial buyers.
Analyzes say the strong bidding emphasizes the appeal of GFL's resources and the increasing focus on environmental sustainability. The possible sale would let GFL simplify its processes and create funds for investment in areas of fundamental expansion.
On Nov. 6, GFL is anticipated to post its Q3 results; investors will be keen for more information on the bid process and the company's strategic direction going ahead. The encouraging changes coincide with GFL trying to profit from increased environmental sector demand.
