Cleanaway Shares Jump 21% After $6.5 Billion EQT Takeover Deal

EQT's entity Sedum Group Pty Ltd. will acquire 100% of Cleanaway's shares for A$3.095 cash per share, less the cash amount of any dividends, according to an exchange filing Monday. The waste manager's board will also pay shareholders a fully franked special dividend ranging between A$0.145 and A$0.190 prior to the deal's implementation.

Cleanaway's stock surged as much as 21% in Sydney, its biggest gain since October 2011.

The deal would mark one of the biggest M&A transactions in Australia this year, according to data compiled by Bloomberg, as Australia has turned into one of the busiest markets in the Asia-Pacific region for dealmaking activity. While Swedish firm EQT has been trying to buy other listed companies in the country, including Perpetual Ltd., its offers were rejected.

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Melbourne-based Cleanaway also joins a growing list of companies that have been subject to private equity takeovers as shares struggle in the public market. Property group Ingenia Communities Group and IDP Education Ltd. are both in discussions with private equity suitors, while advertising firm oOh!Media Ltd. agreed to be taken private for A$898 million in August.

Cleanaway's board has unanimously recommended that shareholders vote in favor of the deal, which remains subject to conditions including shareholder and regulatory approval, the statement said.

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Shareholders will be able to vote by the end of February 2027, with implementation expected by the end of March.

Barrenjoey Markets Pty Ltd. and Macquarie Capital acted as Cleanaway's joint financial advisers, while Ashurst Perkins Coie acted as its legal adviser.