Waste manager Renewi is setting out its strategy for growth against a backdrop of a bid from Macquarie Asset Management which the board has rejected.
The 775 pence (EUR 8.96) per share offer from Macquarie on 28 September was set at a 52% premium on Renewi’s closing price of 509p that day. Shares rose 40% to over 700p on the potential takeover news and on 4 October was at 716p. The asset manager said in a statement it believed ‘Renewi’s ability to deliver its stated ambition will remain constrained under the current capital structure’.
The company operates largely in the Netherlands and Belgium with some local government waste contracts in the UK. Confirming it had received ‘an unsolicited and highly conditional non-binding proposal from Macquarie’, the Renewi board said it had been ‘firmly rejected’.
‘The board is confident in the company’s future and, in particular, the significant value creation opportunity it expects to realise for its shareholders from the delivery of its medium-term plan,’ its statement said.
‘In its Capital Markets Day on 4 October, the company will reinforce the significant growth opportunity available to the company and provide further details of the board’s strategy focussing on several key initiatives that are expected to catalyse value for shareholders through the strengthening of Renewi’s financial and operational platform.’