Australia's Cleanaway agrees to $6.5 billion EQT takeover, shares surge
Australia's Cleanaway agrees to $6.5 billion EQT takeover, shares surge 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
(Reporting by Rajasik Mukherjee in Bengaluru; Editing by Subhranshu Sahu)