Renewi looks likely to accept Macquarie £700.9m takeover deal

The two companies announced the new deal on Thursday last week (28 November 2024), over a year after the Australian firm’s first offer.

Reuters has reported that Renewi’s shares have increased as much as 47% to 816 pence – however this is still below the proposed offer price of 870 pence per share in cash.

Macquarie said it planned to support Renewi’s current strategy, while the waste management company said it would give the Australian firm access to its books to conduct due diligence.

The offer follows a number of offers made by the asset management company – which also owns Beauparc – to Renewi.

In September 2023, Macquarie said it is submitted an offer of 775 pence per Renewi share.

A revised proposal was submitted in October 2023 for 810 pence per share.

The latest offer represents a 7% increase on previous offers.

Renewi described the initial offer in September as “an unsolicited and highly conditional non-binding all-cash proposal” which “fundamentally undervalued Renewi and its prospects”.

Renewi said: “[Our board] remains confident in Renewi’s prospects as a pure-play market leader in Europe’s most advanced recycling markets. The board is also confident in Renewi’s strategy and execution plan to deliver a step-change in margins and cashflow.

“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.”

In a joint statement the two companies that the final possible offer represents a premium of 57% to Renewi’s closing share price of 554p on 27 November 2024 and a premium of 41% to Renewi’s three-month volume weighted average share price of 615p.