SYDNEY: Australian waste management company Bingo Industries on Tuesday said it received a cash buyout offer from a consortium led by private equity firm CPE Capital, valuing the firm at A$2.29 billion ($1.76 billion).
Bingo shareholders will get A$3.50 per share, representing a nearly 28% premium to the stock's last close, the company said in a statement.
It added that the proposal references a scrip alternative which gives shareholders an option to receive a mix of cash and unlisted scrip at a lower upfront price than the cash offer.
"Proposal is being considered by an Independent Board Committee of BINGO and discussions and due diligence with the Consortium have been ongoing," the recycling firm said in a statement.
Bingo, which reported https://bit.ly/3iqDzBT a three-fold jump in statutory profit for fiscal 2020 due to increased network capacity, is likely to benefit from a potential boom in infrastructure investment as the economy reopens after coronavirus-enforced lockdowns.
CPE Capital's investment portfolio ranges from food to the automobile sector, and includes Banksmeadow Recycling site, which it bought https://bit.ly/2KrRj2R from Bingo in 2019.
Shares of the recycling firm rose 0.7% to A$2.74 on Monday, valuing it at A$1.79 billion. ($1 = 1.3017 Australian dollars)- Reuters
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