EQT to Acquire Australian Waste Management Company Cleanaway at an Enterprise Valuation of AUD 9.3 Billion

en.Wedoany.com Reported - On October 19, Swedish investment firm EQT announced that its Infrastructure VI fund has signed a binding implementation agreement with Australian waste management company Cleanaway Waste Management Limited to acquire 100% of its issued ordinary shares by way of a scheme of arrangement, at a cash consideration of AUD 3.095 per share, corresponding to an enterprise valuation of approximately AUD 9.3 billion (approximately USD 6.5 billion). The transaction is expected to be completed by the end of March 2027.

The acquisition will be implemented through Sedum Group Pty Ltd, held by EQT-related funds. The transaction was initially disclosed on August 13, when the indicative price per share was AUD 3.13. Following Cleanaway's payment of a FY2026 final dividend of AUD 0.035 per share on October 8, the cash acquisition price was adjusted accordingly. Based on the pre-adjustment offer price, the transaction represents a 32.1% premium to the closing price of AUD 2.37 per share on August 12, and an enterprise valuation of approximately 20 times Cleanaway's FY2026 underlying EBITDA.

The agreement permits Cleanaway to pay dividends of up to an aggregate of AUD 0.19 per share prior to implementation of the transaction, including any potential special dividend, with the actual amount paid to be deducted from the cash acquisition consideration accordingly. If the transaction is implemented after May 31, 2027, the consideration per share will increase by AUD 0.0002 per day from June 1. The acquisition agreement does not include a financing condition.

The Cleanaway Board has unanimously recommended that shareholders support the acquisition scheme, subject to the absence of a superior proposal and the independent expert continuing to conclude that the transaction is in the best interests of shareholders. The transaction is subject to approval by the company's shareholders, the Federal Court of Australia and relevant regulatory authorities, with regulatory review involving the Australian Foreign Investment Review Board, the Australian Competition and Consumer Commission, and the competition regulators of Kuwait and Saudi Arabia. Certain material contracts also require change-of-control consents by December 14, 2026.

Under the transaction arrangements, Cleanaway will provide shareholders with a scheme booklet containing the independent expert's report, the terms of the transaction and the arrangements for the general meeting. The company plans to hold the general meeting by the end of February 2027, followed by court approval and implementation of the transaction.