Renewi Share Discussion Threads

[outsizeclothes.com] 28/9/2023 20:47

At a closing shareprice 70p below their offer, it might be to their benefit to go hostile in the market and try to mop up a quick 10% at below 775.
A Dawn raid before the Capital Markets Day ?
Or afterwards before 'bid announcement deadline day' if the Capital Markets Day fails to impress ?

[outsizeclothes.com] 28/9/2023 18:52

Renewi PLC ("Renewi" or the "Company")

Further response to possible offer announcement by Macquarie Asset Management ("Macquarie")

Earlier today, the Board of Directors of Renewi (the "Board") confirmed it had received an unsolicited and highly
conditional non-binding proposal from Macquarie in relation to a proposed all-cash offer of 775 pence per Renewi share
for the entire issued, and to be issued, share capital of the Company to be made by funds managed or advised by
Macquarie (the "Proposal"). The Proposal, which was subject to the satisfaction of a broad number of pre-conditions,
including the completion of due diligence, was firmly rejected by the Board of Renewi.

The Board is confident in the Company's future and, in particular, the significant value creation opportunity it
expects to realise for its shareholders from the delivery of its medium-term plan. In its Capital Markets Day on 4
October 2023, the Company will reinforce the significant growth opportunity available to the Company, and provide
further details of the Board's strategy focussing on several key initiatives that are expected to catalyse value for
shareholders through the strengthening of Renewi's financial and operational platform.

-- Dedicated commercial plans to drive 5%+ top line growth: Supported by the Company's strong commercial
proposition and the strategic positioning of its core segments, Renewi has established dedicated commercial plans
to drive organic top line growth. It expects to grow market share through superior customer propositions, further
expansion of recycling capabilities, and further enhancement in the second material production quality to
capitalise on a growing market opportunity for low carbon secondary materials. While maintaining disciplined
capital allocation, the strong sectoral tailwinds combined with Renewi's attractive positioning give the Board
confidence that significant shareholder value can be realised from delivery of growth opportunities over the coming
years.

-- Sustainable improvement in margins: Renewi has initiated a series of near-term initiatives to enhance
efficiency through simplification of the organisation, streamlining administrative processes and fostering a
culture of continuous improvement. These actions will be supplemented by progress in Renewi's digital agenda,
focused on further improving customer related processes, digitising its back offices and upgrading its asset
management capabilities. Delivery of these initiatives is expected to drive sustainable long-term margin
improvement, towards the Company's target of high single digit % EBIT margin.

-- Improving Cash Conversion: The Company is targeting a material improvement in free cash generation, to
reach a conversion ratio of 40% of EBITDA by FY26 (1), through a removal of legacy costs and reduction in
exceptional costs as well as a move to higher asset utilisation, leading to lower capex. This improved cash
generation will enable the Company to operate a more dynamic capital allocation strategy that encompasses both
investment-driven growth and improved shareholder returns.

-- Strategic evaluation of Renewi's UK Municipal business: In line with Renewi's strategic commitment to
sharpen its portfolio focus on its core competence in the sorting and treatment of commercial waste, a
comprehensive review of its UK Municipal business is being undertaken. The Company is actively exploring a range
of options to achieve an exit from this segment, with an outcome targeted during the first half of 2024. The Board
believes the Company's ongoing exposure to this segment is a key impediment to shareholder value creation and
believes significant operational, financial and capital allocation benefits will be derived from delivery of a
successful exit.

Renewi has confidence that delivery of its standalone operational plan will realise value for all its stakeholders,
including significant value upside for its shareholders, and that its delivery offers a materially superior opportunity
than the proposal from Macquarie. The Board therefore does not believe the Macquarie proposal to be in the interests
of Renewi's shareholders, taken as a whole.

Accordingly, the Board strongly urges shareholders to take no action at this time.

[outsizeclothes.com] 28/9/2023 18:31

I'm holding firm here. We are now in play - although I think a further 50p in an offer would be almost impossible for management to justify refusing.

[blackhorse23] 28/9/2023 15:16

Out from here & going to buy GATC

[dplewis1] 28/9/2023 15:06

Some instis are responding now. Value8 NV have said it will not tender its shares. Offer only represents 8x FY 22 and less than 9 times FY 23 earnings - offer is wholly inadequate

[babbler] 28/9/2023 14:08

Look at PDG recent example.... started with one offer now has 3 and from 23p gone to 34 today. Yes I know different sector etc but if they are serious they will raise the bidhttps://www.macquarie.com/au/en/about/news/2023/macquarie-asset-management-completes-investment-in-coastal-waste-and-recycling.html

[wad collector] 28/9/2023 13:51

To state the obvious, the 75p gap suggests that not only does the market not view this as part of a bidding process, but that there is significant doubt that this is an offer that will be completed.
From the outside this is a situation of opacity, is the doubt partly about MMA or it's Dutch equivalent?

[techno20] 28/9/2023 13:43

Topped up. Door very much open for discussion.

[deanmatlazin] 28/9/2023 13:32

they have to come back with a better offer!

[babbler] 28/9/2023 13:00

Coast managed to buy lots day after offer went in...nah nothing to see here lol. Only announced today AFTER the offer rns. Nope nothing wrong there...

[babbler] 28/9/2023 12:54

Seen a few do that recently. Cake box was one.

[dplewis1] 28/9/2023 12:33

Yes maybe other funds sniffing about, it's a popular sector for buyouts. Traded above 800p a year ago, I like their little deramp in the comment

[deanmatlazin] 28/9/2023 12:26

still can make a quick 10% profit at this price.

[deanmatlazin] 28/9/2023 12:24

The stakeholders will force the board to sell. The offer is too good to say NO!

[outsizeclothes.com] 28/9/2023 12:20

Why wait until today? The Board knew of this approach on Sept. 25th.
It should have been released immediately !
I didn't trade the share in the last few days, but no doubt others did.
NOT GOOD ENOUGH OTTO !!!!

[babbler] 28/9/2023 12:05

And the board rejected it lol. Why?? Might get higher offer

[techno20] 28/9/2023 11:47

Great to see value being recognised at last and still some 70p below the offer price!

[mfhmfh] 28/9/2023 11:46

900p please.

[dplewis1] 28/9/2023 11:25

WOW 775p buyout

[wad collector] 08/9/2023 13:49

Climate change is clearly a big news issue, but the worlds plastic contamination ought to be a big one as the plastic industry is inadvertently polluting the land , water, air and even soil.
Recyclability is technically difficult and uneconomic even with consumer enthusiasm. Surely this is an industry that needs not more regulation, but more central subsidies?If a container tax was directly passed to the recycling industry, it would at least encourage the sector not to incinerate so much.
The current UK plastics tax is only doing the first part of that process, and zero rate for products that are more than 30% "Recycled" is merely a step in the right direction and a revenue source.

[zipstuck] 25/8/2023 13:39

Debt plus reduction in metal prices. Double whammy imho

[sausage7] 24/8/2023 11:26

It’s getting ugly now…..

[sausage7] 17/8/2023 08:30

Thanks Alex, I thought this must be the concern but like you, I think the price is over-clubbed, momentum is sadly on the downside for the time being.

[alexisk] 16/8/2023 19:07

Company has some debt that has to be serviced, and interest rates are rising, so there are worries that profits will be impacted. But the pesssimism is overdone in my opinion.