Cleanaway Waste Management (ASX:CWY) shares closed at A$2.47 on Friday 16 October 2026, down 6.1%, ahead of a deadline for private equity group EQT Infrastructure to commit to its proposed A$3.13 a share takeover. EQT’s exclusivity period expired at 7am on Monday 19 October, and Cleanaway has said it will update the market before trading begins.
What EQT has offered
According to Cleanaway’s 13 August announcement, EQT proposed to buy 100% of Cleanaway through a scheme of arrangement:
- Price: A$3.13 cash per share, reduced by any dividends paid after the proposal date
- Value: about A$9.4 billion including debt, or about A$7.05 billion for the equity
- Premium: 32.1% to Cleanaway’s last close of A$2.37 before the proposal
- Ticking fee: an extra 0.02 cents per share per day if the deal is completed after 31 March 2027
The directors said they intend to recommend the deal if a binding agreement is reached at no less than A$3.13, there is no superior proposal and an independent expert finds it is in shareholders’ best interests. The deal would also need FIRB and ACCC approval.
Why today matters
On 12 October, Cleanaway extended EQT’s exclusivity to 7 am on Monday 19 October while EQT finalised its due diligence. EQT committed to sign a scheme implementation deed on or before that deadline. Cleanaway warned there was no certainty the proposal would lead to a binding offer.
Why the shares fell on Friday
Cleanaway shares dropped from A$2.63 on Thursday to a low of A$2.43 on Friday, prompting an ASX price query. In its response, Cleanaway said it was not aware of any undisclosed information or any other explanation for the trading. It said it would provide a further update on the proposal before trading begins on 19 October.
At Friday’s close, Cleanaway shares were about 21% below EQT’s A$3.13 price. That gap shows how much doubt the market had priced in about whether the deal would go ahead.
What each outcome means
- Binding deal signed: shares would likely move closer to A$3.13, with shareholders then voting on the scheme
- EQT walks away: shares could fall back towards where they traded before the proposal, though Cleanaway has guided to FY27 underlying EBIT of A$500 million to A$530 million
What insiders are watching
Takeover periods often bring changes in substantial holder notices as hedge funds and arbitrage traders move in and out. Cleanaway has lodged several such notices since August. Our Megaport insider trading analysis and Maas Group buy-back report show how ASX filings reveal what big holders are doing.
What Cleanaway investors should watch
- This morning’s update on whether EQT has signed a binding deal
- The final price, which could be adjusted for dividends
- The scheme timetable, including the shareholder vote
- Substantial holder notices as funds reposition
Bottom line
Cleanaway shares are sitting well below EQT’s A$3.13 offer as the deadline for a binding deal passes. Today’s update will decide whether that gap closes or the takeover falls through.
