Australia’s Cleanaway Waste Management said on Thursday it would grant EQT Infrastructure exclusive due diligence after receiving an A$9.4 billion ($6.64 billion) takeover offer, sending its shares up nearly 17% in early trading.
EQT Infrastructure, managed by Swedish investment firm EQT, will offer Cleanaway shareholders A$3.13 apiece in cash, valuing its equity at A$7.01 billion. The offer price represents a 32% premium to Cleanaway’s last closing price.
Shares of the waste management firm surged 16.9% in early trading to A$2.77, their highest since October 20 last year. The stock was the biggest gainer on the ASX200 benchmark index .AXJO, which slipped 0.2%.
Cleanaway’s board said it would allow EQT Infrastructure to conduct exclusive due diligence for up to nine weeks to finalise a binding deal. Its directors intend to recommend shareholders vote in favour of the proposal.
The latest proposal came after an initial offer of A$3 per share and provision of limited non-public information on a non-exclusive basis, Cleanaway said.
The Melbourne-based waste solutions provider, which employs more than 10,000 people, forecast 2027 underlying operating earnings between A$500 million and A$530 million, slightly below the Visible Alpha consensus estimate of A$531.8 million.
It reiterated its 2026 operating earnings outlook of A$470 million.
Reuters
