Renewi rejects £636m takeover offer from Macquarie, shares surge

(Sharecast News) - Waste management company Renewi surged on Thursday after saying it had rejected a £636m cash takeover offer from Macquarie Asset Management. Macquarie made a proposal at 775p a share on 25 September..

"The proposal provides a compelling opportunity for Renewi's shareholders to realise their investment for cash at a very significant premium and at an attractive multiple," Macquarie said.

"Macquarie believes that Renewi's ability to deliver its stated ambition will remain constrained under the current capital structure by the limited near-term operating cash flow and limited leverage capacity. In a challenging macro and cost of capital environment, Macquarie believes the proposal represents an attractive alternative for shareholders, attributing a full and fair valuation for the company's future potential."

At 1130 BST, Renewi shares were up 32% at 670p.