* Stocks jump 7.2% in intense trading, hitting a 14-month high
* BINGO intends to declare a special dividend of A $ 0.117 per share
* MIRA offers BINGO shareholders two alternative transaction structures (rewrites with shares, history and details)
April 27 (Reuters) – Australian waste management firm BINGO Industries Ltd on Tuesday agreed to a $ A 2.3 billion ($ 1.79 billion) buyout from funds managed by Macquarie Group, raising its shares to a more than 14 months high.
The waste management industry has seen a wave of deals lately, including a € 13 billion ($ 15.71 billion) merger of global giants Veolia and Suez, and the acquisition by Cleanaway Waste Management of certain Sydney-based Suez assets for A $ 501 million.
In Australia, the government directed investment in the recycling and waste management industry ahead of a 2024 ban on the export of unprocessed waste plastics, paper, glass and tires, in the hope to create thousands of new jobs.
Macquarie Infrastructure and Real Assets (MIRA) offered BINGO shareholders an option between A $ 3.45 per share in cash and a mix of cash and stocks at just under A $ 3.30 per share.
Shares of BINGO, which also intends to declare a special dividend of A $ 0.117 before the deal closes, soared 7.2% in early trades to A $ 3.43.
CPE Capital had approached BINGO in January with MIRA, but reportedly dropped out recently. The private equity firm did not immediately respond to a request for comment.
Elizabeth Crouch, the chair of an independent committee formed by BINGO to review the deal, said they had explored alternatives, including “autonomous value creation opportunities and alternative interests for bidders,” but said concluded that MIRA provided the most value to shareholders.
The alternative A $ 3.30 action plan offers shareholders A $ 1.32 in cash less any special dividends, and the remainder in shares of an unlisted company that will own BINGO.
BINGO has a fleet of more than 330 trucks in the states of New South Wales and Victoria, as well as recycling and collection facilities and landfill sites.
$ 1 = 1.2824 Australian dollars $ 1 = 0.8277 euros Report by Arundhati Dutta and Nikhil Kurian Nainan in Bengaluru; Editing by Aditya Soni and Subhranshu Sahu