Bentley-based waste management group ORT is to call a shareholders’ meeting to vote on the demerger proposal for the company and its subsidiary Organic Resource Technologies Ltd. The boards of both ORT and Organic have determined that significant funding will be required for the commercialisation of the DiCOM® alternative waste technology and expansion of its waste management business. The boards consider that such funding will be more accessible to Organic, as the owner of the DiCOM® technology, as opposed to ORT, the parent company. The patented DiCOM® process uniquely integrates existing bio-processing techniques and advanced waste segregation methodologies to deliver a sustainable solid waste management solution. The restructure of the relationship of the two companies (through the demerger) would see the distribution of Organic shares owned by ORT, to the current shareholders of ORT. ORT executive chairman Richard Rudas said the separation of the two companies delivered the best outcome possible for shareholders. “It allows the Organic board to maximise the potential of the DiCOM® processes and for ORT there is the prospect of developing new business opportunities that will deliver enhanced shareholder value,” he said. Organic chairman Jerome Rowley said that the demerger was the next step in building Australia’s leading waste management company.
© Business News 2018. You may share content using the tools provided but do not copy and redistribute.