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WASTE MANAGEMENT INTERNATIONAL PLC ACQUIRES SOLID WASTE BUSINESS FROM NFC PLC AND PURCHASES ADDITIONAL SHAREHOLDING IN WESSEX WATER PLC

 LONDON, Jan. 26 /PRNewswire/ -- Waste Management International plc (NYSE: WME), through its Wessex Waste Management Ltd. (Wessex Waste) joint venture with Wessex Water plc, announces it has today acquired Waste Management Ltd. (NYSE: WMX), the solid waste management business of NFC plc, and related businesses and assets.
 Under the terms of the sale, Wessex Waste has paid 75.6 million pounds sterling in cash, has procured the repayment of inter-group indebtedness of 11.6 million pounds, and has assumed 10.8 million pounds of Waste Management Ltd's third party indebtedness. Wessex Waste has also agreed to make a further payment to NFC plc of 15 million pounds over the next three years. Waste Management International plc's share of the acquisition cost is initially 49 million pounds and 7.5 million pounds in cash over three years. The company's share of cash needed for the acquisition will come from its existing resources.
 Waste Management Ltd's main business is waste collection, transportation and disposal. It handles a wide range of waste in the industrial, commercial and local authority sectors.
 The turnover of Waste Management Ltd's business in the year ended Oct. 2, 1992, was 30.6 million pounds and profits before interest and taxes were 4.4 million pounds. The capital employed of the company is warranted to be 51.1 million pounds. These figures are based on unconsolidated accounts.
 Wessex Waste's wholly owned subsidiary, UK Waste Management Ltd (UK Waste), is already one of the leading providers of waste management and environmental services in the United Kingdom. Operating nationwide, the company's activities include landfill, collection, and special waste operations.
 Ed Falkman, chief executive of Waste Management International plc, commented: "This is a very exciting development. The two businesses are a good fit and their combination will enhance the services available to UK customers.
 "We expect significant synergy from the integration of UK Waste and Waste Management Ltd. We see strong growth prospects for Waste Management Ltd, mainly as a result of expansion of the company's secured contract base and also from increased usage of the very substantial amount of approximately 43 million cubic meters of consented available space the company possesses. Overall, this acquisition will enhance significantly the growth prospects and profitability of Wessex Waste."
 Wessex Water plc share subscription
 Today, Waste Management International plc has also announced that it will acquire an additional shareholding of approximately 5 percent of the Ordinary share capital of Wessex Water plc. The aggregate cost of the share purchase is approximately 64.5 million pounds.
 Through its subsidiary, UK Waste Management Holdings Ltd, the company has subscribed for the following quantity and classes of Wessex Water plc shares:
 Share type Quantity subscribed
 New Ordinary shares 3,022,510
 New D Ordinary shares 1,060,530
 New C Ordinary shares 7,971,053
 Waste Management International plc has subscribed for 3,022,510 of Wessex Water plc's new Ordinary shares under the rights offering being made today by Wessex Water to all its shareholders. Waste Management International's right to receive such additional shares arises by virtue of its current 14.9 percent holding of B Ordinary shares in Wessex Water. The price at which the 3,022,510 ordinary shares have been subscribed is 480 pence per share, being the rights offer price.
 Waste Management International has also subscribed for 1,060,530 of Wessex Water's new D Ordinary shares, which differ from Ordinary shares only in that they will have no voting rights until 1995. (This is because of legal restrictions described below.) Waste Management International's right to subscribe for the D Ordinary shares arises under an existing option held by the Company. The subscription price for the D ordinary shares is 480 pence per share, being the same as the rights offer price for the new Ordinary shares.
 Waste Management International has also subscribed for 7,971,053 of Wessex Water's new C Ordinary shares. This increases to 20 percent Waste Management International's aggregate economic interest in the enlarged Wessex Water. The subscription price for the C Ordinary shares is 563 pence per share, reflecting the theoretical ex rights price of Wessex Water's shares.
 Legal restrictions limit Waste Management International's ability to hold voting shares in Wessex Water to 15 percent until 1995. When aggregated, the Wessex Water B Ordinary shares currently held by the company and the 3,022,510 new Ordinary shares to be taken up will still come within the 15 per cent voting limit of the enlarged Wessex. To remain within the 15 percent voting limitation, the C Ordinary and D Ordinary shares will be non-voting until 1995. As for participation in profits, the C Ordinary shares, like the existing B Ordinary shares held by Waste Management International, have rights to a fixed dividend equal to 0.75 percent of issue price of such shares until their conversion date, which, at the latest, would be 1998. The D Ordinary shares and new Ordinary shares subscribed to will carry the full Wessex Water dividend.
 The creation of the C Ordinary and D Ordinary shares will require the approval of Wessex Water's shareholders to be sought at Wessex Water's EGM to be held on Feb. 19, 1993. Waste Management International plc will abstain from voting on the creation of the C Ordinary shares.
 All such subscriptions will be paid in cash on the closing of the rights offer and upon approval by Wessex Water's shareholders of the creation of the C Ordinary and D Ordinary shares.
 Wessex Water's principal activities are the supply of clean water and the treatment of waste water, in addition to its solid waste services business jointly owned with Waste Management International plc. For the year ended March 31, 1992, Wessex Water had revenues of 190.8 million pounds, net assets of 663.3 million pounds and pre-tax profits of 76.9 million pounds.
 Waste Management International plc is a leading provider of a range of solid and hazardous waste management services, including collection, transportation, storage, treatment, recycling, incineration, disposal, waste-to-energy technologies and other environmental services.
 The company currently operates in nine European countries: including Italy, Sweden, France, Germany, United Kingdom, the Netherlands, Spain, Denmark and Finland, as well as in Argentina, Australia, New Zealand, Hong Kong and Brunei.
 Waste Management International plc is a majority owned subsidiary of Waste Management, Inc.
 -0- 1/26/93
 /CONTACT: Joe Holsten, (analysts), in London, 071-493-2554, or Peter Coombes, in London, 071-493-2554, both of Waste Management International/
 (WMX WME)


CO: Waste Management International plc; Waste Management Inc. ST: IN: SU: TNM

WB -- NY027 -- 8997 01/26/93 10:20 EST
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Date:Jan 26, 1993
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