Renewi 'minded to recommend' 870p a share takeover bid from Macquarie

(Sharecast News) - Renewi shares rocketed on Thursday after the waste management company said it was minded to recommend a £700m takeover proposal from Australian investment firm Macquarie Asset Management, should a firm offer be made. Responding to earlier press speculation, Renewi said Macquarie had offered 870p per share in cash. This is a premium of 57% to the closing share price on Wednesday.

Renewi noted that the final offer follows a number of approaches made by Macquarie.

In October 2023, Macquarie abandoned its pursuit of Renewi after the company rejected an offer at 810p a share.

"The board remains confident in Renewi's prospects as a pure-play market leader in Europe's most advanced recycling markets," the company said.

"The board is also confident in Renewi's strategy and execution plan to deliver a step change in margins and cash flow. That said, the board has also carefully balanced the likely value creation from the continued delivery of Renewi's strategic plan against the various risks faced by Renewi, the strong value crystallisation in cash at a meaningful premium to the current Renewi share price and the views of Renewi shareholders.

"Accordingly, the board of Renewi has concluded that the proposal outlined above is at a value that the board would be minded to recommend to Renewi shareholders, should a firm intention to make an offer pursuant to Rule 2.7 of the Code be announced on such financial terms, subject to the agreement of all other terms and conditions of an offer."

At 1025 GMT, Renewi shares were up 45% at 801p.

Under UK takeover rules, Macquarie has until 1700 GMT on 26 December to either announce a firm intention to make an offer or walk away.