Join our daily newsletter At The Bell to receive exclusive market insights
- Shares in Australian waste management company Bingo Industries (BIN) have surged amid talks of a cash buyout offering investors $3.50 per share
- The highly-conditional cash proposal came from a consortium led by private equity firm CPE Capital and has triggered a 20 per cent rise in BIN’s share price
- Potential co-investors on the deal include Macquarie Infrastructure and Real Assets
- The deal could see BIN shareholders offered $3.50 per share, which is currently being considered by an independent Bingo committee board
- Bingo shares are going for $3.30 each on the market
Shares in Australian waste management company Bingo Industries (BIN) have surged amid talks of a cash buyout offering investors $3.50 per share.
The cash proposal of $3.50 per BIN share has been tabled by private equity firm CPE Capital on behalf of a consortium including Macquarie Infrastructure and Real Assets.
The waste management and recycling company officially flagged the buy this morning via an announcement to shareholders, acknowledging a number of media reports circling the acquisition offer.
Up for grabs is Bingo Industries’ plethora of waste management and recycling services across New South Wales and Victoria, with a reported market cap of $2.159 billion.
Bingo prefaced the proposal as highly-conditional and indicative, advising there’s no guarantee the buy will go ahead at this stage.
A decision on the offer is being considered by an Independent Board Committee of BINGO, with discussions and due diligence with the Consortium said to be ongoing.
Major shareholders will also need to approve the buy, notably Bingo Managing Director and CEO, Daniel Tartak, and BINGO Director, Ian Malouf.
The proposal also references a scrip alternative that could potentially provide shareholders with an option to receive a blend of cash and unlisted scrip consideration at a lower upfront price than the cash proposal.
There is potential for higher consideration over time according to a statement should certain earnings requirements be met should the proposed transaction be completed.
Bingo shares are up 20.4 per cent each, trading at $3.30 each on the market at market close.
