Macquarie Asset Management has expressed its interest in acquiring waste-management business Renewi, following the rejection of its initial proposal worth £636.3 million ($772.2 million). The proposal, made on behalf of its managed funds, offered 775 pence per share for the entire share capital of Renewi.
Renewi confirmed that it received an unsolicited and highly conditional proposal from Macquarie on Monday. After careful consideration, Renewi believed the offer to undervalue the company and its future prospects.
Macquarie sees this bid as an exciting opportunity for Renewi’s shareholders to realize their investment through a cash payout at a premium. It further highlights that Renewi’s current capital structure limits its potential due to limited near-term operating cash flow and leverage capacity.
In response, Macquarie has invited the Renewi board to engage in constructive discussions to establish the terms of a recommended transaction to be presented to Renewi’s shareholders.
Renewi advises its shareholders to refrain from taking any action at this time.
As of 1228 GMT, the shares in Renewi have surged by 34% or 171.0 pence, reaching 680.0 pence.
