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Highlights
- Final Offer Details: Macquarie offers 870 pence per Renewi share, a 57% premium to Renewi’s closing share price on 27 November 2024.
- Macquarie’s Plans for Renewi: Macquarie intends to support Renewi’s strategy, sustainability goals, and employee rights post-acquisition.
- Board’s Review: Renewi’s Board is confident in the company’s prospects but will consider the significant premium and shareholder interests in its decision.
Renewi plc (LSE:RWI) has announced that it has reached a preliminary agreement with Macquarie Asset Management regarding the potential acquisition of the entire share capital of Renewi. Under the terms of the offer, Renewi shareholders would receive 870 pence per share in cash, representing a significant premium over the company’s current share price.
Financial Terms and Offer Premium
The proposed acquisition offers a 57% premium over Renewi’s closing share price of 554 pence on 27 November 2024, which was the latest business day prior to the announcement. The offer also represents a 41% premium over the company’s three-month volume-weighted average share price of 615 pence as of the same date.
This Final Possible Offer follows multiple approaches from Macquarie, indicating strong interest in Renewi and its strategy. While the terms of the offer are final, the deal remains subject to a number of customary pre-conditions, including the completion of due diligence.
Macquarie’s Plans for Renewi Post-Acquisition
If the acquisition is successfully implemented, Macquarie has outlined several plans to support Renewi’s continued growth and transformation:
- Strategic Support: Macquarie intends to provide capital and support for Renewi’s current strategy, which focuses on transforming the company into a leading waste-to-product business.
- Ongoing Transformation: The firm is committed to backing Renewi’s ongoing transformation programmes, including the OneRenewi initiative.
- Innovation and Growth: Macquarie aims to foster innovation-led growth by offering long-term, flexible access to capital.
- Sustainability Commitment: Macquarie has expressed its intent to support Renewi’s sustainability targets, which align with its own net-zero commitments.
- Employee Support: Macquarie is committed to safeguarding existing employment rights, including pensions, and maintaining employee consultation structures.
Board Response and Shareholder Considerations
The Board of Directors of Renewi has carefully reviewed the Final Possible Offer with its financial and legal advisers. While the board remains confident in Renewi’s strategic plan and prospects as a market leader in Europe’s advanced recycling markets, it has balanced this confidence with the strong cash premium offered by Macquarie, which represents significant immediate value for shareholders.
The Board has noted that the final decision will weigh both the potential for value creation through Renewi’s strategy and the current opportunity for shareholders to realise value in cash at a meaningful.
