* CPE Capital led consortium table A $ 3.50 / share offering
* Co says talks with the PE consortium are ongoing
* Stock hit highs since Feb 2020 (Update in last paragraph with CPE Capital declining to comment)
January 19 (Reuters) – Bingo Industries Australia said on Tuesday that it had received a cash purchase offer of A $ 2.29 billion ($ 1.8 billion) from a consortium led by private equity firm CPE Capital, delivering shares of a waste management company. to an 11-month high.
The offer comes at a time when the government is injecting stimulus into the recycling and construction sectors and encouraging infrastructure investment as the economy reopens from the lockdown imposed by the coronavirus.
Under the proposal, Bingo shareholders would earn A $ 3.50 per share, nearly a 28% premium for the last close of the shares, the company said in a statement.
A deal will hand over nearly A $ 460 million to Chief Executive Officer and major shareholder Daniel Tartak, whose parents started Bingo on the outskirts of Sydney in 2005 by acquiring a small skip bin company for less than A $ 1 million.
Bingo said the proposal includes an alternative structure that would give shareholders the option to receive a mix of unlisted cash and scripts at a lower upfront price than the cash offer.
“The proposal is being considered by Bingo’s independent board committee and discussions and due diligence with the consortium are under way,” the company said.
Bingo stock surged as much as 23.7% to A $ 3.39, the highest since February 20, 2020, but is still trading below its bid price.
“(The offer) is just one shot and an opportunity to engage with the family,” said Henry Jennings, senior analyst at the Marcustoday Financial Newsletter.
“The takeover has to be close to A $ 4 to get over the line.”
CPE Capital’s investment portfolio ranges from the food to the auto sector, and includes the Banksmeadow Recycling site, which was purchased from Bingo in 2019.
CPE Capital declined to comment.
$ 1 = 1.3017 Australian dollars Report by Sameer Manekar in Bengaluru, additional reporting by Byron Kaye in Sydney; Edited by Nick Zieminski and Stephen Coates
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