13th Feb 2025 13:07
(Alliance News) - Macquarie Group Ltd on Thursday said it has reached an agreement on the final terms of its proposed takeover of Renewi PLC, and Renewi reported revenue growth for the first nine months of its current financial year.
Renewi is a FTSE 250-listed waste management company based in Milton Keynes, England. Macquarie is a Sydney-listed investment bank and financial services firm.
The acquisition offer has valued Renewi at around GBP707 million, with Renewi shareholders entitled to receive 870 pence per share under the terms of the deal.
This represents a premium of around 57% to the 554p closing price of Renewi shares on November 27, which was the last day of trading prior to the start of the offer period.
Shares in Renewi were up 4.2% at 850.00 pence each in London on Thursday afternoon. Macquarie shares closed up 0.3% at AUD236.25 in Sydney on Thursday.
"The offer represents not only a material premium for our shareholders, but also opportunity with the support from Macquarie and BCI to further deliver on our strategy, to the benefit of all stakeholders, from employees to customers," said Renewi Chair Ben Verwaayen.
"We believe the consortium will be a strong steward of Renewi, building on our success to date, and we are consequently recommending shareholders vote in favour of the combination."
The deal follows Macquarie's ruling out the possibility of an offer in October 2023, after multiple attempts to engage with Renewi. In September 2023, Macquarie had said it was considering making a takeover offer worth GBP636 million, but Renewi rejected the price as being too low.
Renewi also on Thursday said revenue for the nine months that ended December 31 was EUR1.31 billion, up 4.7% from EUR1.25 billion the year before.
Underlying earnings before interest and tax for the nine-month period grew 8.4% to EUR77.6 million.
Renewi noted that, while market conditions "remain mixed", it expects to deliver "solid progress" for financial 2025, on the back of commercial and cost initiatives.
Full-year revenue is anticipated in line with prior expectations, and Renewi reiterated its medium-term targets of a high single-digit underlying Ebit margin and organic annual revenue growth of more than 5%.
By Emily Parsons, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.