Renewi says would back GBP701 million Macquarie tilt

Renewi announced that it would recommend a takeover proposal exceeding £700 million from Macquarie Asset Management, should a firm offer be made.

Renewi says would back GBP701 million Macquarie tilt

Macquarie Asset Management unveiled a "final possible cash offer" on Thursday, valuing the Milton Keynes-based waste management company at approximately £700.9 million. This offer comes more than a year after Macquarie previously walked away following failed attempts to acquire the company. Renewi stated that the proposed offer "is at a value the board would be inclined to recommend" to shareholders. The final cash offer of 870 pence per share represents a 57% premium over Renewi’s closing share price of 554.00 pence on Wednesday. Following the announcement, shares of Renewi surged 45% to 804.00 pence in London on Thursday morning. Macquarie, part of the Sydney-listed Macquarie Group Ltd, said the offer follows several prior approaches to Renewi and was made "in response to press speculation."

Macquarie to provide support and capital to Renewi

If the offer is accepted, Macquarie intends to "provide support and capital to Renewi to further implement its current strategy as a pure-play waste-to-product company for the benefit of all stakeholders." Macquarie also noted it has secured backing from shareholders owning approximately 15% of Renewi. In October 2023, Macquarie had ruled out making an offer after multiple engagement attempts, and in September 2023, it had considered a £636 million takeover bid, which Renewi deemed too low. Macquarie is required to confirm its firm intention to make an offer or announce that it does not intend to proceed by December 26.