Analysts with GMP FirstEnergy speculated about the future of Tervita Corporation on Thursday following a report by MergerMarket that the company is considering an outright sale.
This comes just 14 months after Tervita went public following its reverse takeover of Newalta Corporation, noted GMP FirstEnergy’s Ian Gillies.
“We expect suitors most likely to be a large U.S. waste disposal company or a financial sponsor. We view Tervita’s business as attractive given its cash flow profile relative to other oilfield services peers and the high barriers to entry in its business,” Gillies wrote in a research note.
“Canada remains a challenging place to attract investment capital, but [we] expect an acquirer could be taking a longer-term view on the Western Canada Sedimentary Basin.”