The Cleanaway Waste Management Ltd (ASX: CWY) share price has jumped 20% after revealing an agreed takeover deal.
Cleanaway Waste Management is one of the largest bin collectors and recyclers in Australia.
Takeover deal agreed
The waste management business announced that it has entered into a takeover deal with Sedum Group, which is an entity owned by funds managed, operated and/or advised by EQT (a private equity group).
Under the terms of the deal, owners of Cleanaway shares will receive $3.095 cash per share, minus the cash amount of any dividends paid.
Cleanaway said that the deal implies an enterprise value (with no cash or debt) of approximately $9.3 billion.
The deal also represents a premium of 32.1% to the closing Cleanaway share price before EQT’s non-binding bid. It represents a premium of 25% to the closing price on Friday, 16 October 2026.
Under the deal, the Cleanaway board may declare and pay a fully franked special dividend of up to $0.19 per share, which is currently expected to be in the range of $0.145 to $0.19 per share before the deal is complete.
The Cleanaway board of directors unanimously recommend that Cleanaway shareholders vote in favour of the takeover, in the absence of a superior proposal and subject to an independent expert concluding the offer is in the best interests of shareholders.
Leadership commentary
The Cleanaway Chair Samantha Hogg said:
The Board has carefully assessed EQT’s proposal against the value of Cleanaway on a standalone basis, including the opportunities ahead of us under Blueprint 2030 2.0 and the investment and execution required to deliver them. Following a disciplined process and engagement with EQT, the Board is unanimous in its view that the Scheme delivers strong and certain cash value to shareholders, at a significant premium to Cleanaway’s undisturbed share price.”
Accordingly, the Board unanimously recommends that shareholders vote in favour of the Scheme, in the absence of a Superior Proposal and subject to the Independent Expert concluding (and continuing to conclude) that the Scheme is in the best interests of Cleanaway shareholders.
Final thoughts on the Cleanaway share price
It’s not a guaranteed deal. Regulatory approval, shareholder approval and an independent expert’s positive assessment are all still required.
Another factor is that ‘no material adverse change’ and ‘no prescribed occurrence’ occurring are conditions, so a major change in the market (or with the company) could scupper the deal.
I’d be willing to sell shares now and lock in the current price if I were a shareholder. There could be other opportunities presented in the coming months before the takeover is complete.
I think there are some very attractive ASX growth shares that could be top buys.
