Cleanaway Waste Management, which is based in Australia, announced on Monday that it has reached a deal to be acquired by Swedish private equity investor EQT for approximately USD6.5 billion, or AUD9.3 billion, including all debt.
The company’s stock has gained close to 20% since October 2011. Under the deal, Cleanaway’s shareholders will be paid AUD3.13 per share, down from the final dividend paid on 8 October.
The company buying Cleanaway is offering AUD3.13 for every single share people own. The overall value of the deal, including the company’s share value plus its debt, was about AUD9.3 billion.
For shareholders to be induced to sell their shares, the buyer has agreed to pay a premium of 32.1% over the closing price for the shares on August 12, the last trading day before EQT’s approach was announced.
Because of this premium, Cleanaway’s board of directors recommends that all shareholders vote “yes” and accept the buyout bid unless the company is outrun by a superior bid from a third party.
Before the transaction is fully completed, Cleanaway may also pay its shareholders a final dividend of up to $0.19 per share in cash.
However, whatever cash they hand out beforehand will be subtracted from the final buyout price you receive.
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This announcement follows a deal made in August, when Cleanaway gave EQT Infrastructure the exclusive right to thoroughly examine its financial books before making a final offer.
Cleanaway Waste Management is Australia’s top waste and recycling company. For over 7 decades, they have helped businesses, councils and communities turn waste into some useful resources.
The company has the largest network and safely collects, recycles, and treats waste to protect the environment. Their main goal is to reduce landfill, create a circular economy, and build a sustainable future together.
