Macquarie Consortium Bids $1.8 Billion for Waste Firm Bingo

(Bloomberg) -- Investors including Macquarie Group Ltd. offered A$2.29 billion ($1.8 billion) for Bingo Industries Ltd. to gain a network of recycling and waste-management facilities in Australia.

A consortium that comprises Australian buyout firm CPE Capital and Macquarie Infrastructure and Real Assets bid A$3.50 in cash for each Bingo share, Bingo said in a statement Tuesday. That’s 28% higher than Monday’s close.

For more details of the offer, click here

Bingo is considering the offer and “discussions and due diligence with the consortium have been ongoing,” the company said in its statement. At the same time, there’s no certainty of a deal, Bingo said.

Bingo shares soared 20% to A$3.28 at 10:08 a.m. in Sydney. Representatives for Macquarie and CPE declined to comment.

Initially a family owned dumpster business in Western Sydney, Bingo now operates the largest network of recycling and resource recovery centers in New South Wales and Victoria states, according to the company’s website.

The takeover proposal is also set to include a scrip alternative that would allow Bingo shareholders to receive a mixture of cash and equity in the business -- at a lower price than the upfront cash offer, according to the statement.

Bingo Chief Executive Officer Daniel Tartak and board member Ian Malouf would probably have to accept the scrip deal, based on its minimum and maximum acceptance conditions, Bingo said. Together they own about 32% of the company’s stock, according to Bloomberg data.

Many investment funds are barred from owning unlisted assets.

(Added details on the scrip offer and no comments from the suitors)