Australian asset management giant Macquarie has made an offer to buy FTSE 250 waste disposal company Renewi for $887m (£701m).
In a stock exchange notice, Renewi said the two firms had “reached preliminary agreement on the financial terms of a potential acquisition”, with the board recommending the price to investors, if a firm offer under the UK Takeover Code is made.
The news has sent share prices rocketing up 44.4 per cent for Renewi, which primarily operates in the Benelux region, to its highest level in over two years.
The 870 pence per share cash offer has pushed Renewi’s share price to 800 pence at time of writing.
Macquarie’s offer is a whopping 57 per cent higher than Renewi’s share price at close last night, the fourth highest premium for a UK takeover offer this year.
The Australian asset manager previously attempted to buy the FTSE 250 firm for 810 pence last October, but was ultimately turned down.
In August, Renewi was given the green light by regulators to sell its UK municipal business to Biffa for £125m.
The firm’s deal with Biffa marked a bid to exit the UK market, which it has previously described as “unpredictable”. At the time, it claimed its British portfolio had remained a “significant drag” on the group, costing it €28m (£23.8m) in the last two years.
The news of the sale was issued alongside the firm’s full year results, which saw the firm slide to a loss, due largely to its deal with Biffa.