Dolomatrix assets move to a bigger owner

DolomatrixWaste business Dolomatrix (DMX) has proposed to sell all of the business to Tox Free Solutions for $58 million. DMX intends to give the cash back to shareholders leaving a listed shell that may also be sold. Dolomatrix shares, which have languished for years amidst almost total market disinterest, popped 38% to 36 cents from 26 cents. Shareholders should receive approximately 39 cents after the transaction is closed. The shareholders meeting will  be held  9th February  2012.

Tox Free Solutions (TOX) is the logical owner of these assets. While TOX is a Western Australian business, DMX gives TOX more exposure to the east coast. TOX has a range of services including hazardous waste management and recycling, industrial maintenance services and household rubbish collection.

DMX is a chemical recycling and waste management business that has never been large enough to attract market investors.

Quest holds 2.8% of DMX in our sophisticated investor portfolio. We expect the deal will be approved as two significant shareholders have already indicated in favour. The deal should settle in March. While this is a win for our investors, it has been an exercise in extreme patience!