Macquarie Asset Management said it is considering a possible cash offer for waste-management business Renewi, after having had a £636.3m proposal rejected on Monday.
The asset manager said Thursday the proposal was made on behalf of one or more of its managed funds to Renewi at 775 pence a share for its entire share capital.
London-listed Renewi separately confirmed it had received an unsolicited and highly conditional proposal from Macquarie on Monday, and after considering it in detail, believed it to fundamentally undervalue the company and its prospects.
Renewi said it was confident in its future, and particularly the significant value creation it expects to realize for shareholders through delivery of its medium-term growth plan.
It added late Thursday it has several key initiatives to improve shareholder value, which it will provide more detail on in its Capital Markets Day in late October. These include dedicated commercial plans to drive top line growth, sustainable margin improvement, and a strategic evaluation and possible sale of its UK Municipal business.
The bid provides a compelling opportunity for Renewi’s shareholders to realize their investment for cash at a premium, Macquarie said. It further said it sees Renewi’s stated ambition constrained under its current capital structure by the limited near-term operating cash flow and leverage capacity.
“Macquarie invites the [Renewi board] to engage constructively to agree the terms of a recommended transaction to be put forward to Renewi’s shareholders,” it said.
Renewi said it strongly urges shareholders to take no action at this time.
Shares in Renewi closed Thursday up 197.0 pence, or 39%, at 706.0 pence.
From Dow Jones Newswires
https://www.penews.com/articles/macquarie-considers-offer-for-waste-management-business-renewi-20230929
