(Bloomberg) -- Macquarie Asset Management offered to acquire Renewi Plc for about £701 million ($887 million) after its previous takeover attempt of the London-listed waste management company was rejected. Shares of Renewi jumped by the most since 2009.
The asset manager has reached a preliminary agreement with Renewi on a possible cash offer of 870 pence per share, representing a 57% premium to Wednesday’s closing price, according to a statement that confirmed an earlier Bloomberg News report. Macquarie said the offer is final and won’t be increased.
Macquarie has received commitments from three major Renewi shareholders — Coast Capital, Avenue Europe International Management LP and Paradice Investment Management LLC — that hold a combined 15.1% of the company and have pledged to support the potential offer.
Renewi agreed to give Macquarie access to confirmatory due diligence and said the offer is at a value that it would be inclined to recommend. Macquarie has until 5:00 p.m. local time on Dec. 26 to announce a firm intention to make an offer or walk away, according to the UK takeover rules.
Shares of Renewi extended gains to as much as 47% on Thursday, their biggest advance since December 2009, following the announcement.
Macquarie’s latest move on Renewi came after its last offer was turned down about a year ago. Macquarie offered to take over Renewi in September 2023 and raised its bid to 810 pence per share a month later, which was rejected by Renewi’s board saying it “fundamentally undervalued” the company.
Renewi operates industrial and commercial waste collection and processing across the Netherlands and Belgium, its website shows. It also runs business that involves recycling of electrical, electronic equipment, glass and contaminated soil.
Macquarie Asset Management has invested and managed assets in the waste sector in Australia, the US and the UK. In 2021, it agreed to acquire Beauparc Utilities, a recycling and processing led waste-to-resource business across Ireland, the UK and the Netherlands.
Citigroup Inc. and Macquarie Capital are advising Macquarie Asset Management on the potential deal, while Renewi is working with Goldman Sachs Group Inc.
(Updates with confirmation throughout.)
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