Shares in London-listed waste management specialist Renewi witnessed a dramatic surge of nearly 50 per cent following news that Australian asset management powerhouse Macquarie has launched a £700 million takeover bid.
The cash offer, valued at 870p per share, represents a substantial 57 per cent premium to Renewi’s Wednesday closing price of 554p. The move comes just over a year after Macquarie’s previous 810p bid was dismissed for “fundamentally” undervaluing the organisation. The market responded enthusiastically, with shares closing up 46.7 per cent at 813p on Thursday.
The board has signalled its inclination to recommend the deal to shareholders if a formal offer materialises before the 26 December regulatory deadline. Board members emphasised that the deal would facilitate a “step change” in margins and cash flow while delivering a “meaningful premium” to shareholders.
Renewi, which evolved from the Victorian-era industrial giant Shanks & McEwan, has transformed its business model to focus on recycling and waste-to-energy operations, primarily in the Netherlands and Belgium. The company recently divested its final British municipal business to Biffa for £130 million, citing the UK market’s “unpredictable” nature.
Macquarie has secured irrevocable undertakings from Renewi’s three largest shareholders – Coast Capital Management, Avenue Europe, and Paradice Investment Management – collectively controlling approximately 15.1 per cent of shares. The Sydney-based asset manager has committed to maintaining employment rights and pension provisions while supporting Renewi’s strategic direction as a “pure-play waste-to-product” company.
The bid arrives amid broader challenges in UK equity markets, which have consistently underperformed global counterparts, catalysing increased merger and acquisition activity. Macquarie’s recent track record includes several waste management acquisitions, notably the €1 billion valuation of Irish-based Beauparc, alongside investments in British wind farms, electric vehicle networks, Southern Water, and the national gas pipeline.
Post Disclaimer
The following content has been published by Stockmark.IT. All information utilised in the creation of this communication has been gathered from publicly available sources that we consider reliable. Nevertheless, we cannot guarantee the accuracy or completeness of this communication.
This communication is intended solely for informational purposes and should not be construed as an offer, recommendation, solicitation, inducement, or invitation by or on behalf of the Company or any affiliates to engage in any investment activities. The opinions and views expressed by the authors are their own and do not necessarily reflect those of the Company, its affiliates, or any other third party.
The services and products mentioned in this communication may not be suitable for all recipients, by continuing to read this website and its content you agree to the terms of this disclaimer.