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.