Cleanaway Waste (CWY AU): EQT's A$3.13/Share NBIO Is Fair

• It’s been pretty quiet on the M&A front for Cleanaway Waste (CWY AU). KKR was rumoured to be interested four years ago. Around the time Cleanaway acquired Suez Sydney Assets.

• Now Swedish PE outfit EQT has proposed taking Cleanaway private, via a Scheme, at A$3.13/share, a 32.1% premium to undisturbed. EQT has been afforded nine weeks of exclusive due diligence.

• The indicative offer is subject to FIRB, ACCC, MACs, plus the standard Scheme vote from Cleanaway shareholders. Pricing appears fair. The board is supportive at A$3.13/share.

Trade:

• Assuming terms are firmed and five months to complete AFTER the DD period, this is trading at a gross/annualised spread of 14%/25% (mid-March completion).

• If not in, I’d be getting some exposure here.

• I’d pay up to A$2.85/share.

• Terms remain indicative.