Abrams Capital Acquires Additional Shares of SECURE Waste Infrastructure Corp.

The most recent news release (April 20, 2026) details that Abrams Capital Management has increased its stake in SECURE Waste Infrastructure Corp. to approximately 10% by acquiring an additional 160,000 shares at an average price of $22.41 per share. Crucially, Abrams has announced its intention to vote against the proposed acquisition of SECURE by GFL Environmental Inc., which was announced on April 13, 2026. The deal values SECURE at an enterprise value of ~C$6.4 billion with a consideration of C$24.75 per share (80% stock, 20% cash). Abrams argues the current management team is well-positioned independently and the arrangement is not in shareholders' best interests.

Historical context shows SECURE has been executing an aggressive capital allocation strategy since late 2025: - October 2025: Reported Q3 Adjusted EBITDA of $135M, revised full-year guidance down slightly due to commodity softness. Initiated share repurchases (~$27M in Q3). - November 2025: Closed a $300 million senior unsecured note offering (5.75% due 2032) to repay revolver debt, improving liquidity structure. - December 2025: Renewed Normal Course Issuer Bid (NCIB) for up to ~19M shares (~8.8% of outstanding). Declared $0.10 quarterly dividend. - February 2026: Reported FY2025 Adjusted EBITDA of $501M (+17% per share). Announced 5% dividend increase to $0.105/share. Completed significant share buybacks ($284M in FY2025). - April 13, 2026: GFL Environmental announced definitive agreement to acquire SECURE for C$24.75/share (23% premium). Expected close H2 2026.

The April 20 news introduces significant uncertainty to the primary catalyst driving the current stock valuation: the GFL acquisition. While the deal offers a 23% premium, Abrams Capital's accumulation of a 10% stake specifically to vote against the transaction materially increases the risk that shareholder approval (requiring ≥66⅔%) may not be secured or will face prolonged litigation/regulatory hurdles.

• Deal Certainty: The spread between the current trading price (~$22.60) and the offer price ($24.75) has widened due to this news, reflecting increased arbitrage risk.
• Management Alignment: Abrams' stance challenges management's recommendation to accept the deal, potentially leading to a proxy fight or renegotiation.
• Financial Impact: If the deal fails, SECURE reverts to standalone valuation (likely lower than offer price given current market conditions). If the deal passes, shareholders receive the premium but lose independent upside potential as argued by Abrams.
• Transcript Discrepancy: The provided transcript context refers to "SES AI" (EV batteries, $21M revenue), which is materially inconsistent with SECURE Waste Infrastructure Corp. (Waste management, ~$500M EBITDA). This data was excluded from financial modeling as it pertains to a different entity despite the ticker similarity.

SECURE Waste Infrastructure Corp. is a Canadian waste management and environmental services company with a focus on industrial waste, produced water disposal, and metals recycling. - Flagship Projects: Two greenfield produced-water disposal facilities in the Alberta Montney region; reopening of an industrial waste processing facility (expected Q2 2026); Edmonton metals recycling acquisition (Jan 2025). - Operations: Core network includes landfill operations, waste-to-energy, and hazardous materials handling. The company emphasizes infrastructure-backed recurring cash flow.