FINWIRES · TerminalLIVE
FINWIRES

Cleanaway Waste Management's Slow Growth Helps EQT's Bid, Says Jefferies

By

Cleanaway Waste Management's (ASX:CWY) fiscal 2027 guidance suggests earnings improvement will take time, which could benefit EQT Infrastructure by allowing it to acquire the business before the recovery is fully reflected in its valuation, according to a Thursday Jefferies note.

The company on Thursday said it received a conditional, non-binding indicative proposal from EQT Infrastructure to acquire all of the company's shares through a scheme of arrangement at AU$3.13 apiece.

The company's fiscal 2027 earnings before interest and taxes (EBIT) guidance range of AU$500 million to AU$530 million is below estimates, and therefore this bid does insulate shareholders from another disappointing result, while supporting the Board's intention to recommend, Jefferies said.

"Cleanaway has continued to disappoint relative to market expectations over the last five years. EQT's approach is therefore understandable, given the option to make changes to the business and deliver stronger cash flow growth in the medium-term.", the note added.

Jefferies kept a buy rating on Cleanaway with a price target of AU$3.05.

Related Articles

Asia

Phoenix Silicon Earmarks Additional NT$4.82 Billion CAPEX Budget for 2026

Phoenix Silicon International (TPE:8028) board approved an additional NT$4.82 billion capital expenditure budget for 2026, according to a Thursday Taiwan Exchange filing.The increased spending will cover production equipment, plant facilities and construction projects.The capex is aimed at capacity deployment and will be funded through self-financing and capital-raising methods, the semiconductor wafer processing services provider said.

TPE:8028
Asia

Jereh Oilfield Services' H1 Profit Falls 4%, Revenue Rises 11%; Shares Up 5%

Yantai Jereh Oilfield Services' (SHE:002353) net profit attributable to shareholders for the first half fell 3.6% to 1.20 billion yuan from 1.24 billion yuan a year earlier, according to a Friday disclosure on the Shenzhen bourse.Earnings per share dropped 3.3% year on year to 1.18 yuan from 1.22 yuan.Operating revenue rose 11% to 7.65 billion yuan from 6.90 billion yuan in the previous year.The oil equipment manufacturing company's shares jumped 5% during the morning trade.

SHE:002353
Asia

US to Impose 100% Tariffs on Some Drones to Counter China

The U.S. government will impose a 100% tariff on imports of drones and their components, according to a fact sheet by the White House released Thursday.The tariffs could particularly hurt China, the world's largest drone maker, Bloomberg reported separately.The 100% rate will apply to drones with a maximum takeoff weight of more than 25 kilograms and with thermal imaging features, Washington said.The administration of President Donald Trump will also levy a 25% tariff on smaller unmanned aircraft that lack national security capabilities.Washington will also impose a 15% duty on drones and components made by the EU, Japan, Liechtenstein, South Korea, Switzerland, and Taiwan, and 10% for UK-made drones as long as their parts come from the U.S., the fact sheet showed.The tariffs will take effect 21 days after signing, while duties for non-critical drone parts will take effect after 180 days, the White House said.

^KOSDAQKOSPIShanghai Composite^SZSETaiwan Weighted