Australia's Cleanaway Agrees to A$9.3B ($6.5B) Buyout by Swedish Private Equity Firm EQT

Australian waste solutions provider Cleanaway Waste Management agreed on Monday to be acquired by Swedish private equity group EQT in a transaction valuing the company at about A$9.3B ($6.5B), including debt. Cleanaway shares rose nearly 20% to A$2.960 following the announcement, putting the stock on pace for its strongest single-day gain since October 2011. Under the scheme implementation deed, shareholders will receive A$3.095 in cash per share, minus the cash amount of any dividends paid before the transaction closes. The payout reflects EQT's earlier A$3.13 per-share indicative offer after adjusting for Cleanaway's final dividend paid on October 8, and represents a 32.1% premium to the August 12 closing price prior to the disclosure of EQT's approach. Cleanaway stated it may distribute aggregate cash dividends of up to A$0.19 per share—including a fully franked special dividend—before implementation, which would be deducted from the scheme consideration. The Melbourne-based company had previously granted exclusive due diligence to EQT Infrastructure in August, and its board unanimously recommended that shareholders vote in favor of the deal in the absence of a superior proposal.