Renewi Share Discussion Threads

[george stobbart] 23/1/2019 18:16

First half of Feb. Cora van Nieuwenhuizen (Minister of Infrastructure, Environment and Water) will be answering questions from MPs on TP Soil and SSZ.

But this is irrelevant to ATM re-opening as technical groups are testing current to come out with an outcome - once they do 99.9999% of the time ministers just approve and sign it and update the legislation.

The issue is becoming intolerable as huge amounts of TP Soil has been moved to the Netherlands for recycling (ATM is the largest facility in EU) and is currently being stored and cannot be processed because of the regulator.

Renewi's decision to cut its capacity to 30% was sort of a blackmail to the regulators to speed up their decision making process unless they want to have warehouses flooded at 100% capacity with contaminated soil across Benelux.

Renewi has many construction companies already pre-committed to buy the TP soil once an approval is fully granted. The positive thing here is that RWI has changed its invoicing policy starting 1/1/19 by increasing prices over inflation (across all divisions) and the new soil could be sold at higher prices compared to 2018.

[taximania] 23/1/2019 17:07

What is the date of this public hearing ...those links dont work for me , ta,

[dplewis1] 23/1/2019 16:31

I assume they won't get any compensation for having to shut down the plant while they do the tests if they get the green light? Just a hefty insurance claim I guess

[dplewis1] 23/1/2019 16:28

It's an absolute bloody car crash. At least the new CEO can try and start a clean slate. Just glad I don't have a large holding ..some of the insti holders must facepalm every time they look at the chart.

[george stobbart] 23/1/2019 16:27

Takeover thesis remain intact at around the same levels their competitor was acquired last year (Attero at 7-8x EBITDA by 3i Infrastructure and DWS).

Implied takeover price: 75p

Events:

1)Sale of the Canadian business and Reym B.V. Industrial cleaning with the next weeks

2) ATM returns to full capacity following testing from national regulator IL&T and green light from local regulators (namely DCRM (Rotterdam), OVMB (Brabant) and RUD (Zeeland).

Good sign has been escalated to the Dutch parliament and there is public hearing in February.

hxxps://www.rijksoverheid.nl/regering/bewindspersonen/stientje-van-veldhoven/documenten/kamerstukken/2018/12/11/visie-op-duurzaam-hergebruik-van-grond

hxxps://www.rijksoverheid.nl/regering/bewindspersonen/stientje-van-veldhoven/documenten/kamerstukken/2018/12/11/diepe-plassen-thermisch-gereinigde-grond-en-barneveld

3) Takeover of Renewi at c. 75p

[sirrux] 23/1/2019 15:45

News of a strike at one of their locations. With the fires, soil issues and everything else there doesn't seem to be a lot going right for these guys. They are also looking to add in the HR dept., but I suspect that's unrelated.

[taximania] 20/1/2019 19:56

i think thats been going on for a while, theres a bit of room yet before debt becomes an issue, i cant see them maintaining the divi if ATM sales do not restart because 10% is unrealistic, however i expect there will be news - one way or the other - before then.
Have to say i have rarely held such a poorly performing stock , it seems incapable of holding onto any daily gain but a lot of shares on my monitor are looking pretty ill ...its not just RWI .

[pugugly] 20/1/2019 08:59

Looks as though debt - re MOS article for details will be the killer - Cannot see how they can continue to pay dividends funded by debt - Potentially a massively diluting equity raise or is it potentially too contaminated by PFI contacts and historic contamination issues?

[dplewis1] 17/1/2019 07:12

PE guy joined as a NED...hmmmmm

[dplewis1] 13/1/2019 07:18

https://www.thisismoney.co.uk/money/investing/article-6584899/MIDAS-SHARE-TIPS-Dig-deep-theres-treasure-trash-waste-firm-Renewi.html

[sirrux] 10/1/2019 12:12

Squeaky bum time....dirty or clean?

[sirrux] 10/1/2019 10:07

Come on regulators issue your judgments - is the soil dirty or clean? That is what we are talking about here, right! Hmmmm, maybe all soil is technically dirty whether you clean it or not so establishing liability may be tricky here.

[sirrux] 09/1/2019 10:19

Looks like it's about to pop, the question is which way? Lucky dice time.

[dplewis1] 08/1/2019 20:48

It had been trying to leg higher the past couple of days and now this has cut it off at the knees again. Yes, tomorrow will be interesting to see if there are bargain hunters and who sold that 10 bar.

[taximania] 08/1/2019 20:23

Wad collector....it was up 6 percent and then the news was released i think.

[taximania] 08/1/2019 20:21

until 3.30 it was starting to look like it had hit bottom lol , feels a bit stupid even discussing it because looks like the downward spiral has started again ffs.
i guess that order must have been worked long before the close and just declared later, looking through the results it makes sense now the the primary issue is with previously treated soil rather than the current configuration.
tomorrow will be interesting . i had a manageable 25,000 but i doubled that at 33 and 32 and i wish i hadn't bothered now.

[wad collector] 08/1/2019 20:09

What an odd reaction to the news , up 6% then crashes back down to minus 6 %. Almost as if the market didn't know what to make of it...
Not like us then!

[dplewis1] 08/1/2019 19:50

I'll do some digging tomorrow. Maybe they saw the news and just thought enough is enough but from the looks of it that wasn't in the auction uncrossing. I imagine there will be a TR-1 off the back of it though. Good spot it's the prosecutor and not the regulator. Increases my suspicion they might be looking at a fine to settle old soil production output. I wonder when this will turnaround?!

[sirrux] 08/1/2019 19:49

Serious stuff alright but this is big business with many dependents. They need to learn from this, sounds like someone blew the whistle. The best policy is to come clean, pay your dues and move swiftly on from it.For a business of this size to lose two thirds of it's value already it looks to me like the market just wants certainty on the impacts and the authorities decisions will help in that.The big dump seems to be done at a price that a worked buy is happy to accept. If it goes south from here, jobs will go. The regulators can be exposed too but this is not the UK so different game rules may apply! There's also the possibility that they have some insurances in place to cover at least some of the impacts of this. You would expect so.

[taximania] 08/1/2019 19:27

And this visit was by the prosecutor rather than the regulator ...seems to suggest when read with the paragraph from the last results that the main problem is with the previously treated soil ?

We have made progress with the national regulator (IL&T). They had indicated that upgrades
we have made voluntarily to the production process mean that ATM soil meets their
requirements communicated in February and repeated in June and the current legal product
specifications as per the certification. We have also been in discussions over the summer
with local regulators who are responsible for providing permits for specific use of cleaned soil
in their respective areas.

[taximania] 08/1/2019 19:22

hmmm ...what do you make of that big chunk ...why would anyone deal such a large amount at that price or would they have been worked thru earlier ? Not something im familiar with really .
it was all going well at 3.30 haha

[dplewis1] 08/1/2019 19:12

Bloody hell..someone has capitulated. 10 million share sell after hours!

[dplewis1] 08/1/2019 16:28

The ATM soil plant is already out of action, so I wonder how much extra this will fall as surely that is priced in already. I guess now there's the potential of a fine for historical production? Either way, this is a car crash of a merger and any talk of 'synergies' are way off the mark.

[sirrux] 08/1/2019 16:15

A tricky one to call, I don't know Dutch regulators but sounds like if they are not completely happy on "green" issues they will say so. If they do give the green light it might mark the turnaround point for this business and a company for the future. I read this RNS as a heads up that news is coming soon otherwise why rush it out now but obviously they cannot say when.