Dec 11 (Reuters) - Cleanaway Waste Management CWY.AX said on Monday it would buy smaller rival Tox Free Solutions TOX.AX for A$3.425 per share in cash, valuing Tox at A$671 million ($503.72 million) on a diluted basis.
The Cleanaway offer is at a 20.6 percent premium to Tox's closing level on Friday of A$2.84. Under the deal, Tox shareholders will be entitled to receive an interim dividend of A$0.05 per share in fiscal 2018, the company said in a statement.
In a separate statement, directors of Tox Free said they unanimously recommended that shareholders vote in favour of the Cleanaway offer.
($1 = 1.3321 Australian dollars)