Australia's Cleanaway agrees to $6.5 billion EQT takeover, shares surge

By Reuters News

Oct 19 (Reuters) - Cleanaway Waste Management CWY.AX said on Monday it had agreed to be bought by Swedish private equity group EQT EQTAB.ST in a deal valuing the Australian waste management company at about A$9.3 billion ($6.5 billion), including debt.

Here are some more details:

  • Shares of Cleanaway rose nearly 20% to A$2.960, set for their best day since October, 2011

  • Under the terms of the deal, Cleanaway shareholders will receive A$3.095 in cash for each share held, less the cash amount of any dividends paid before completion of the transaction

  • The consideration reflects EQT's indicative offer of A$3.13 per share, adjusted for Cleanaway's final dividend paid on October 8

  • Cleanaway said the A$3.13 offer values the company at about A$9.3 billion, including debt, and represents a 32.1% premium to its closing share price on August 12, the last trading day before EQT's approach was disclosed

  • Cleanaway said its board unanimously recommends shareholders vote in favour of the scheme implementation deed, in the absence of a superior proposal

  • The firm said it may pay aggregate cash dividends of up to A$0.19 per share before implementation, including a fully franked special dividend. Any dividends paid will be deducted from the scheme consideration

  • In August, the Melbourne-based waste solutions provider had granted exclusive due diligence to EQT Infrastructure, managed by Swedish investment firm EQT


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