Renewi Share Discussion Threads

[gregsc] 07/3/2024 12:42

Anyone know when this Australian bank can come back with another bid?
That's assuming they want to.

[george stobbart] 04/3/2024 19:37

If Ben Verwaayen, Otto et al try and reject any other bid above £8 without engaging or opening the books for Due Diligence (or try and hide it from shareholders as The Times implied) the boot is coming fast this July

[outsizeclothes.com] 28/2/2024 12:18

I would hope that MacQuarie would not make the same mistake again, and would go hostile this time, rather than try to win over this snout in trough crowd.

[sausage7] 28/2/2024 10:28

I agree Outsize. When the management rejected outright the Macq approach did they really not foresee any stress in their business just 3 months later. I feel they have been disingenuous with shareholders and have lost credibility. The sad fact is that if any approach is made in the future, even if a low-ball bid, it would probably be met with support by the majority of shareholders to rid us of the stress of owning such a company.

[outsizeclothes.com] 20/2/2024 15:06

I'll be showing my feelings with as many "against" votes as I can place to motions at the AGM.

[mr george stobbart] 07/2/2024 22:53

Ben Verwaayen has been appointed Renewi Chairman nearly 4 years ago (Apr-2020).

He hasn't bought even £1 of RWI shares ever since and is sitting nicely on a £200k fixed salary with no variable 'at risk' incentives whilst Otto has significant skin in the game.

In the 2023 AGM, Verwaayen was voted Against his re-election by c. 20% of valid ballots.

He opposed all Macquarie bids and keeps grabbing fixed £200k p.a. (unprecedented number for a UK small cap NED Chair) while RWI shares are falling towards 5 quid.

I predict that during the 2024 AGM in July this 20% will increase significantly and Verwaayen will most likely get the boot.

[wad collector] 30/1/2024 22:33

People don't make their way up corporate ladders by having soft elbows; their primary motivation is self-reward, which we all seek but have different thresholds of acceptance of collateral damage. Not a sphere of industry where the thoughtful succeed I suspect...

Oddly the TU is not showing up on the RNS HERE.

[outsizeclothes.com] 30/1/2024 12:15

Otto and Co. really have shown themselves up to be greedy, aloof, arrogant, disregarding of the shareholder OWNERS of the Company, and totally self-serving.

The only reason I think that this hasn't tanked is that people will know that MacQuarrie can come again in a few months, and that if they go hostile Otto and Co. haven't got a hope of making a credible defence after this.

Regardless of Theo's misgivings, I say "bring on the bid" and at £9 they can have all mine. I'd take £8.50 now rather than trust "keep bid offers secret, as it might pull my snout out of the trough" Otto.

[george stobbart] 30/1/2024 10:24

This used to dip 10% or so in similar situations in the past and most long term holders will recall.

Getting a bounce and got bought with both fists below 6 quid. I was expecting worse

Probably market is suspicious takeover still not completely off the table

[pugugly] 30/1/2024 07:47

profit warning - make the bid rejections even more painful for shareholders

[george stobbart] 30/1/2024 07:09

Ok so more of the same.

Will they give us an answer why they never made public the 900p takeover bid? And what was the reason again they rejected the 810p one?

[outsizeclothes.com] 21/12/2023 11:16

Hi Theo.
Why disastrous ?
In what exact ways ?

From my point of view I'm a shareholder looking for the maximum return on my investment. Although I like to consider myself "green[er]" I'm not so wrapped up in environmental issues that I will forego profits on my investments.
Nor would I delay making good returns on investment by maybe several years if I can avoid doing so.

[theolonghair] 21/12/2023 05:29

I am afraid that The board foresaw what these macquarrie investors would be capable and likely to do to Renewi. A death house construction. Ultimately I am glad Renewi didn't take the bait.
You should wonder why they made the bid in the first place. All you have done is given the board smack because they didn't fall for that bid. I'm confident it would have been disastrous if they did.

[outsizeclothes.com] 19/12/2023 18:15

Serious questions need to be asked.
At "up to 900p" the Board rejected a 50% over then shareprice premium out of hand without consulting shareholders ?
Either Otto and Co. are aloof, ignorant and dismissive of shareholders, or just greedy for what's in it for them (wages and perks), or they really think they can get us to over that level in at least the Medium [Jan. 2026 at latest) term.
Based on the "ifs and buts" in the bid rejection/Capital Markets Day, they would need to hit every target they set WITHOUT further share dilution.
A very tall order.
But Otto and Co. now need to deliver big time.

[gregsc] 19/12/2023 11:24

part of Sunday Times article.


Shareholders in Renewi, the Milton Keynes-based rubbish and recycling group once known as Shanks, are demanding answers after the board rejected a £720 million takeover bid from Australian infrastructure investor Macquarie without first consulting them.

Macquarie, it has emerged, made an approach of up to 900p a share earlier this year, but it was rejected by the Renewi board. The company did not tell its shareholders of the potential offer. Macquarie subsequently went public with a lower bid of 775p in October, equivalent to £636 million. This, and a slightly higher subsequent offer, were also rejected by the company.

[horseyphil] 18/12/2023 12:51

Renewi's inclusion from today in the ASCX index on the Amsterdam exchange probably accounts for the price rise.

There was also an article in yesterday's Sunday Times which seemed to suggest that Renewi had received an approach at 900p earlier this year, but never disclosed it to shareholders.

The article was behind the paywall, so I didn't get to read it, just saw the headline. Does anyone have access to it? Is it connected to Macquarie?

[outsizeclothes.com] 18/12/2023 12:25

Thanks George.
So Shanks management must have been more than useless, and/or their contract salespeople were being paid commission, and brought in "volume regardless of profit".
Even worse (absolutely dire!!!) if they signed contracts without a Get Out clause / built-in inflation / margin protection / "exceptional circumstances/force majeure" extending right out to 2034-2040.
As you allude to, - management is really trying to pull the wool over our eyes when they say they think they can sell on such poison!

Although there has been a somewhat recovery in shareprice, Otto and Co. need to deliver visible, tangible, value.

[mr george stobbart] 18/12/2023 09:48

These UK PFI/PPP contracts go back to the Shanks PLC period and all of them are designated as onerous since Renewi merged with Shanks. Effectively, Renewi is accounting that these will be loss making by the end of their useful life. There are currently only 5 left:

- Argyll & Bute / PFI Expiry: September 2026
- Cumbria / PFI Expiry: June 2034
- Wakefield / PFI Expiry: February 2038
- Barnsley, Doncaster and Rotherham / PFI Expiry: June 2040
- East London Waste Authority (ELWA)/ PFI Expiry: December 2027

To save you from wasting your time researching those, only ELWA has some sort of upside intrinsic value and is co-owned with JLEN Environmental Assets (listed with ticker JLEN). The bizarre case here is that JLEN reports a positive NAV for ELWA whilst Renewi has written it down to zero (or arguably carries negative NAV).

The rest 4 contracts are effectively worthless. It's laughable that Renewi is suggesting they can extract shareholder value from the UK contracts through a strategic review to sweeten the pill for the Macquarie bid rejection. Arguably if there was any value there they could have sold them out since 2017 to cut leverage.


The real value of the business is in the Benelux core and if they can extract even 1 quid from the 4 UK PFIs it's a plus.

ELWA is special case, but unfortunately JLEN does not report its exact NAV so that we can have an idea.

[outsizeclothes.com] 15/12/2023 16:39

A question for anyone who's been here for ages:- many years, - if we have such.

At what stage, and why, did the UK contracts become onerous ?
Was it a miscalculation of margins?, Or not having inflation / wage rises protection built in ? Or the cost of unforeseen, post contract signing, extra regulations ? Or gross local mis-management ?
What exactly went or is going wrong there ?
And why can the Company not walk away, or increase margin to cover the losses or onerous obligations ?

[wad collector] 15/12/2023 11:28

Looks like your verbal kick up the backside is working!

[mr george stobbart] 13/12/2023 13:29

These guys need to work harder to justify not accepting the 815p bid.

Selling the onerous UK contracts and paying a nominal dividend aint gonna cut it

[outsizeclothes.com] 05/12/2023 15:53

5 December 2023

Renewi plc
("Renewi", the "Company" or, together with its subsidiaries, the "Group")

2023 AGM - Update Statement

In its 2023 Annual General Meeting results announcement the Company noted that resolution 17, the second of the two
Disapplication of Statutory Pre-Emption Rights authorities sought, did not receive sufficient support to be passed at
the AGM and received over 20% of votes against.

In accordance with provision 4 of the UK Corporate Governance Code 2018, the Board has engaged the Company's
shareholders to understand and discuss their views with respect to this resolution. Views expressed by those
shareholders that voted against resolution 17 included reservations concerning the increased level of capital that
could be raised under the new authority requested, and, in certain cases, the level of the authority sought conflicted
with shareholders' internal voting policies. The Board notes that 73.19% of shareholders voting at the AGM voted in
favour of resolution 17 which, as a special resolution, required at least 75% of votes cast to be in favour in order to
pass.

Whilst resolutions 16 and 17 followed the provisions of the Pre-Emption Group's Statement of Principles, the Board will
continue to keep this matter under review and have regard to the outcome of discussions with shareholders in
determining the authorities to be sought from shareholders at its AGM in 2024.

-----------------------------------------------------------

Remember management rejected £8.15.
Yet they wonder why shareholders voted not to allow them dilute their holdings by raising new money in large amounts, no doubt at well below £8.15.

C'mon Otto and entourage - show us the value that justified bid rejection.

And a trope along the lines of "we now see that we need extra funds raised by issuing a huge bung of shares to create value going forward in XYZ years time, but we didn't see this at the time of rejecting the bid" just won't cut it !!!

[mcmather] 14/11/2023 21:56

Edison note from yesterday; Exhibit 19: Valuation changes (pence per share) new ‘Take-out’ - 1,207.