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 a report by Reuters.
The Australian waste management company’s shares surged by almost 20% following the announcement of the deal.
Under the terms of the proposed transaction, Cleanaway shareholders will receive AUD3.095 per share in cash, adjusted for dividends paid before completion. The terms reflect EQT’s earlier AUD3.13-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.
The company’s board has unanimously recommended the transaction, subject to the absence of a superior offer. Shareholders could also receive pre-completion dividends totalling up to A$0.19 per share, with any payments deducted from the acquisition consideration.
EQT Infrastructure, the infrastructure investment strategy of EQT, secured exclusive due diligence access to Melbourne-based Cleanaway in August, paving the way for the agreement.
