Sweden's EQT agreed to buy Australia's Cleanaway Waste for 6.5 billion US dollars, adding another example to the wave of Australian stock privatization

The Zhitong Finance App learned that the Swedish private equity investment agency EQT AB has agreed to acquire Australian waste management company Cleanaway Waste Management Ltd., through one of its entities. The deal valued the company at about 9.3 billion Australian dollars (6.5 billion US dollars). After a period of poor stock price performance, the Australian company became the latest local company to be transferred to private hands.

According to an exchange announcement on Monday, Sedum Group Pty Ltd., an entity owned by EQT, will acquire 100% of Cleanaway's shares in cash at AU$3.095 per share, less the cash amount of any dividends. The waste management company's board will also pay shareholders a fully franked special dividend in the range of $0.145 to $0.190 per share before the deal is implemented.

As a result, Melbourne-based Cleanaway has joined an expanding team — these companies have successively been the target of private equity acquisitions due to stock price pressure on the open market. Real estate group Ingenia Communities Group and IDP Education Ltd. are currently both in negotiations with private equity acquirers; advertising company OOh! Media Ltd. agreed in August to be privatized for $898 million.

According to the announcement, Cleanaway's board of directors unanimously recommended that shareholders vote for the deal; the deal still needs to meet conditions including shareholder approval and regulatory approval. Shareholders will be able to vote until the end of February 2027, and the deal is expected to be implemented by the end of March.

Barrenjoey Markets Pty Ltd. and Macquarie Capital (Macquarie Capital) acted as joint financial adviser to Cleanaway, and Ashurst Perkins Coie acted as its legal advisor.