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 shares surged almost 20% following the announcement.
- • The Cleanaway board has unanimously recommended the deal, subject to the absence of a superior offer.
- • EQT Infrastructure secured exclusive due diligence access in August, which paved 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. The announcement sent Cleanaway's shares up by almost 20%.
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, the day 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.
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, the day 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.
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