Waste manager Bingo Industries has announced it would be acquired by Macquarie Infrastructure and Real Assets and its managed funds for $2.3 billion.
Under the deal, Bingo investors will have the option to receive $3.45 per share, or a mix of cash and unlisted scrip.
Bingo Industries CEO Daniel Tartak holds a 19.8 per cent stake in the company.
The company operates a fleet of about 330 garbage trucks – mostly in Sydney – with chief executive Daniel Tartak holding an 19.8 per cent stake in the company.
Bingo’s independent board committee and other Bingo recommending directors unanimously recommended the scheme.
The cash consideration will be less any special dividend declared and paid to Bingo shareholders on or before the date of implementation of the scheme.
Bingo said it expects to declare a fully franked special dividend of 11.7 cents per share, resulting in franking credits of approximately 0.5 cents per Bingo share.
The mixed cash and unlisted scrip alternative to the cash consideration is $3.30 per Bingo share, comprised of $1.32 in cash and the remainder in unlisted scrip in Recycle and Resource Holdings Limited, an unlisted newly incorporated entity which will indirectly own 100 per cent of the issued capital in Bingo.
Additionally, Bingo shareholders electing the Mixed Cash and Unlisted Scrip Alternative will be eligible for the earn-out dividend of up to 80 cents per share.
Bingo independent board committee chair Elizabeth Crouch said the scheme was in the best interests of Bingo’s shareholders.
Bingo shares shot up in January following news of a proposed $2.6 billion takeover by CPE Capital and Macquarie, but have not surpassed $3.41 since.
Bingo independent chairman and non-executive director Michael Coleman has recused himself from discussions on the issue and abstains from giving a recommendation in respect of how Bingo shareholders should vote on the scheme due to his position as a non-executive director at Macquarie Group Limited.
More to come
A concise wrap of the day on the markets, breaking business news and expert opinion delivered to your inbox each afternoon. Sign up here.
Most Viewed in Business
From our partners
Source: Read Full Article