Swedish private markets investor 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 Private Equity Wire citing a Reuters report. Cleanaway, an Australian waste management company, saw its shares surge by almost 20% following the announcement of the deal, according to Private Equity Wire.
Deal terms: AUD3.095 per share, adjusted for dividends
Under the terms of the proposed transaction, Cleanaway shareholders will receive AUD3.095 per share in cash, adjusted for dividends paid before completion, according to Private Equity Wire. The terms reflect EQT’s earlier AUD3.13-per-share proposal, revised to account for Cleanaway’s final dividend paid on 8 October, the publication reports.
The offer represents a 32.1% premium to Cleanaway’s closing share price on 12 August, before EQT’s approach became public, according to the same report. Shareholders could also receive pre-completion dividends totalling up to A$0.19 per share, with any payments deducted from the acquisition consideration, Private Equity Wire reports.
Board recommendation: unanimous, subject to no superior offer
Cleanaway’s board has unanimously recommended the transaction, subject to the absence of a superior offer, according to Private Equity Wire. The publication reports that the cash consideration is adjusted for dividends paid before completion.
EQT Infrastructure: exclusive due diligence in August
EQT Infrastructure, described as the infrastructure investment strategy of EQT, secured exclusive due diligence access to Melbourne-based Cleanaway in August, paving the way for the agreement, according to Private Equity Wire.
Context
Reuters is a global news agency that reports on public markets and corporate transactions, and Private Equity Wire attributed the information in its coverage to a Reuters report.
