By Laura McGuire
A major shareholder in Renewi has reportedly asked its board not to engage with Australian global financial services group Macquarie until it raises its £636m bid for the firm.
According to reports in The Times, the Anglo-Dutch waste management company rejected an offer of 775p a share from Macquarie last month, on the grounds that it “fundamentally undervalues” the firm.
“The board considered the proposal in detail and believes it fundamentally undervalues the value of Renewi and its prospects, and … was rejected,” Renewi said at the time.
A top 10 shareholder in Renewi told the outlet that it “studied the offer of Macquarie and believes the offer does not reflect the true value of Renewi”.
“The board should engage with Macquarie once the offer is raised significantly,” they added.
But another top shareholder insisted that Renewi should consider talks with Macquarie regardless.
Since Macquarie’s offer became known last month, Renewi’s share price has increased 50 per cent to 723p giving it a value of £570m.
Macquarie has made a slew of waste management acquisitions in the last few years, including Irish firm Beauparc for €1.4bn (£1.2bn).
Renewi, a London-listed firm, is understood to have hired Goldman Sachs as a financial adviser, as markets anticipate a sale.
City A.M. has contacted Macquarie and Renewi for a comment.
