Renewi Takeover Rumours (RWI)

A bid will never come in when the company is trading at 700/600p as the premium would be too small(given they rejected 50% uplift). So that takeover premium is slowly disappearing from the share price and its now trading at its fundamentals which are ok but not great. I would argue that the business is in much better, more focused shape. Just need economic activity to pick up in terms of higher volumes. Takeover. Like Wood Group (!) they will be given a chance to prove themselves, if not a buyer will be back. There are few of these listed ESG (compliant) assets around.

I've trimmed 80% of my position prior to RWI joining the 250 in the summer. Unfortunately the reality of the situation is that the company has a lot of issues to sort out and not much has changed since when the stock was trading sub 500 prior to the bid(apart from disposing of the UK operations with a small impairment to carry). A bid will never come in when the company is trading at 700/600p as the premium would be too small(given they rejected 50% uplift). So that takeover premium is slowly disappearing from the share price and its now trading at its fundamentals which are ok but not great. Unfortunately with all going on in the world the ESG hype is subsiding so it would be a long slog I suspect.

Apologies for my last misleading post- Renewi has formally appointed Goldman Sachs regarding the takeover process etc since the CMD and post the Macquarie bid but has not yet updated their website Appointment of advisors Renewi has appointed Goldman Sachs International as financial adviser alongside existing advisers Greenhill, Peel Hunt and Berenberg and has also hired FTI Consulting as Public Relations advisors.

**Renewi has hired Goldman Sachs as an advisor to explore takeover options** Posted an hour ago with the same Dutch analyst that correctly 'leaked' the timing of the UK sale Renewi from 12:12 with English subtitles https://www.youtube.com/watch?v=XOE2OrdrOTY All the other stuff they are discussing are not new "news" and just a rehash of yesterday's RNS but the Goldman Sachs one is interesting. Renewi has also not released an RNS yet regarding appointing Goldman Sachs and haven't updated their website with the list of Advisers and registrars hxxps://www.renewi.com/en/investors/investor-relations/shareholder-information/advisers-and-registrars We'll see if he is right but that Dutch analyst has been a credible source in the past

For me the interesting thing about the disposal is whether or not the disposal constitutes a material change of circumstances (as judged by the Takeover Panel). RWI has said that its Benelux business is highly predictable compared to the risks associated with the UK business. If I was Macquarie, I'd put a request in to the Panel just to test the water as I think there is now a pretty good basis on which to get Panel approval for an unsolicited bid.