Key Takeaways
- • EQT has agreed to acquire Cleanaway Waste Management in a transaction valuing the business at approximately A$9.3bn ($6.5bn) including debt, according to Reuters.
- • Cleanaway shareholders will receive A$3.095 per share in cash, adjusted for dividends paid before completion, a 32.1% premium to the 12 August closing price before EQT's approach became public.
- • Cleanaway's board has unanimously recommended the deal, subject to the absence of a superior offer.
- • Cleanaway shares surged almost 20% following the announcement.
- • EQT Infrastructure secured exclusive due diligence access in August, paving the way for the agreement.
Summary
Swedish private markets investor EQT has agreed to acquire Cleanaway Waste Management, the Melbourne-based Australian waste management company, in a transaction valuing the business at approximately A$9.3bn ($6.5bn) including debt, according to a report by Reuters. Cleanaway's shares surged by almost 20% following the announcement.
Under the proposed terms, Cleanaway shareholders will receive A$3.095 per share in cash, adjusted for dividends paid before completion. The price reflects EQT's earlier A$3.13-per-share proposal, revised to account for Cleanaway's final dividend paid on 8 October. The offer represents a 32.1% premium to Cleanaway's closing share price on 12 August, before EQT's approach became public. Shareholders may also receive pre-completion dividends totalling up to A$0.19 per share, with any such payments deducted from the acquisition consideration.
Cleanaway's board has unanimously recommended the transaction, subject to the absence of a superior offer. EQT Infrastructure, the infrastructure investment strategy of EQT, secured exclusive due diligence access to Cleanaway in August, which paved the way for the agreement.
The transaction is a notable take-private of a listed Australian infrastructure-style services business by a global private markets manager, with the premium and board endorsement positioning it as a conventional recommended cash deal.
Under the proposed terms, Cleanaway shareholders will receive A$3.095 per share in cash, adjusted for dividends paid before completion. The price reflects EQT's earlier A$3.13-per-share proposal, revised to account for Cleanaway's final dividend paid on 8 October. The offer represents a 32.1% premium to Cleanaway's closing share price on 12 August, before EQT's approach became public. Shareholders may also receive pre-completion dividends totalling up to A$0.19 per share, with any such payments deducted from the acquisition consideration.
Cleanaway's board has unanimously recommended the transaction, subject to the absence of a superior offer. EQT Infrastructure, the infrastructure investment strategy of EQT, secured exclusive due diligence access to Cleanaway in August, which paved the way for the agreement.
The transaction is a notable take-private of a listed Australian infrastructure-style services business by a global private markets manager, with the premium and board endorsement positioning it as a conventional recommended cash deal.
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