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LONDON – Renewi plc and Macquarie Asset Management have disclosed preliminary terms for a potential takeover of Renewi by Macquarie, with an offer of 870 pence per share in cash. This proposal, announced today, signifies a 57% premium over Renewi’s closing share price on Monday and a 41% premium on the three-month volume-weighted average share price.
The offer follows previous approaches by Macquarie to acquire the waste-to-product company and is deemed final, although Macquarie retains the right to increase the offer if a competing bid emerges. The deal is contingent upon customary conditions, including due diligence.
Macquarie’s intentions under the acquisition include bolstering Renewi’s strategy, supporting transformation programs, and ensuring access to capital, while maintaining employment rights and supporting Renewi’s sustainability goals. These align with Macquarie’s net-zero commitment.
The announcement also mentioned that in September 2024, Macquarie secured irrevocable undertakings from three of Renewi’s largest shareholders, who collectively control approximately 19% of Renewi’s issued ordinary share capital, to support the offer. These shareholders are Coast Capital Management LLC, Avenue Europe International Management LP, and Paradice Investment Management LLC.
Renewi’s Board has reviewed the offer and believes it represents a compelling value that they would be inclined to recommend to shareholders, pending the finalization of all terms and conditions.
Shareholders have been advised to take no action at this time, with further announcements to be made as necessary. There is no certainty that a formal offer will be made. Macquarie must confirm its intentions by 5.00 p.m. (London time) on December 26, 2024, or declare no intention to bid, as per the City Code on Takeovers and Mergers.
This report is based on a press release statement and does not constitute financial advice or an endorsement of the offer.
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