Consortium makes $2B bid to buy BINGO Industries

A consortium led by Australian private equity firm CPE Capital has made a $2 billion bid to buy ASX-listed company BINGO Industries.

As reported yesterday in the Australian Financial Review, the formal offer to acquire BINGO was made in December.

In an ASX statement, BINGO confirmed it has received an “unsolicited, highly conditional, non-binding, indicative proposal.”

“The proposal is subject to a number of conditions, including due diligence and financing,” the statement reads.

“The proposal is being considered by an Independant Board Committee of BINGO and discussions and due diligence with the consortium have been ongoing.

“There can be no assurance that any transaction will result from discussions with the consortium.”

BINGO’s statement notes that the indicative cash price currently offered to BINGO shareholders under the proposal is $3.50 per share.

The proposal also references a scrip alternative that is under development, which would provide all shareholders with the option of electing to receive a mix of cash and unlisted scrip consideration at a lower upfront price than the cash proposal.

According to the Australian Financial Review, BINGO was listed on the ASX in 2017, and after a number of acquisitions, trades with a $1.78 billion market capitalisation.

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