April 1 (Reuters) - Suez SA SEVI.PA :
* CONFIRMS FOLLOWING APPROACH MADE BY CLEANAWAY IN H1 2020, TWO COMPANIES ARE IN ADVANCED DISCUSSIONS CONCERNING PURCHASE BY CLEANAWAY OF WHOLE OF SUEZ' RECYCLING AND RECOVERY ACTIVITIES IN AUSTRALIA
* TRANSACTION, IF COMPLETED WOULD CREATE A STRONG PLAYER IN THE AUSTRALIAN MARKET
* TWO COMPANIES HAVE REACHED PRELIMINARY AGREEMENT ON VALUATION, WITH AN IMPLIED TRANSACTION MULTIPLE OF ABOUT 12X FY20 EBITDA, LEADING TO AN ENTERPRISE VALUE OF AROUND AUD 2.520 MILLION ($1.91 million)
* AT THIS POINT, ALTHOUGH NEGOTIATIONS ARE AT AN ADVANCED STAGE, THERE CAN BE NO GUARANTEE THAT DEFINITIVE AGREEMENTS WILL BE SIGNED AND A TRANSACTION WILL BE IMPLEMENTED
* TO STRUCTURE TRANSACTION TO ENSURE THAT IT IS COMPATIBLE WITH PROPOSAL TO ENTER INTO NEGOTIATIONS MADE BY SUEZ TO VEOLIA VIE.PA ON MARCH 21: SALE AGREEMENT WOULD BE TERMINATED IF, BY END APRIL / BEGINNING OF MAY, (I) SUEZ REACHES AGREEMENT FOR TRANSACTION INCLUDING TENDER OFFER ON SUEZ, OR (II) IN CASE PUBLIC ANNOUNCEMENT IS MADE FOR TENDER OFFER AT €22.5/SHARE (CUM DIVIDEND) PRICE FOR 100% OF SUEZ
* IN FY20, SUEZ' AUSTRALIAN R&R ACTIVITIES GENERATED A REVENUE OF AUD 1.412M
* SUEZ SA SAYS IT SHOULD BE NOTED THAT VEOLIA HAS INITIATED LEGAL ACTIONS AGAINST SUEZ, AND CLEANAWAY IN FRANCE AND AUSTRALIA