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

Cleanaway Shareholders to Vote on $6.5B EQT Takeover After 20% Share Jump

Cleanaway Waste Management Agrees to $6.5 Billion EQT Takeover

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

Key Details of the EQT Takeover Deal

Here are some more details:

Share Price Surge

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

Deal Terms and Shareholder Consideration

• 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

Valuation and Premium

• 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

Board Recommendation and Dividends

• 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

Background on the EQT Approach

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

Reporting and Editorial Credits

(Reporting by Rajasik Mukherjee in Bengaluru; Editing by Subhranshu Sahu)