Bingo Industries confirmed it has received a cash-based takeover offer from funds advised by private equity group, CPE Capital, valuing the Sydney-based waste manager at $2.29 billion.
Bingo on Tuesday announced the $3.50 per share bid in the wake of media reports on Tuesday morning of a looming bid.
Shares in Bingo closed flat on Monday at $2.74 and jumped 20.4% on Tuesday to end at $3.30.
That more than made up for the 14% drop in value in 2020.
Volume on Tuesday was more than 5.4 million shares, three times the daily average of just over 1.8 million.
“BINGO confirms that it has received an unsolicited, highly conditional, non-binding, indicative proposal from funds advised by CPE Capital on behalf of CPEC and its potential co-investors (the Consortium), which include Macquarie Infrastructure and Real Assets, for the acquisition of BINGO by way of scheme of arrangement,” the company told the ASX.
As well as the cash proposal, the mooted bid also references an under-development scrip alternative that would provide all shareholders with the option of electing to receive a mix of cash and unlisted scrip consideration at a lower upfront price.
The cash and unlisted scrip alternative is subject to a minimum and maximum acceptance condition that will likely require major shareholders – Bingo CEO, Daniel Tartak, and Director, Ian Malouf, to accept the cash and unlisted scrip alternative.
That indicates that the private equity group wants to retain them in the business, and doesn’t want to offer them cash would probably see them taking the money and run.
Bingo said the Proposal is being considered by an independent board committee and discussions and due diligence with the consortium have been ongoing.
“There can be no assurance that any transaction will result from discussions with the Consortium,” the company said.
Bingo – which has a fleet of 300 waste trucks in Sydney and Melbourne – acquired rival Dial-A-Dump in August 2018 for $578 million.
