BlueScope board rejects 'highly opportunistic' $13b bid from SGH, Steel Dynamics
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The news: BlueScope's board of directors has unanimously rejected a $13 billion takeover proposal received from Ryan Stokes' SGH and US-based Steel Dynamics, describing it as "highly opportunistic" and arguing it significantly undervalues the company.
The context: On Monday, the Kerry Stokes-controlled industrials conglomerate confirmed it had launched a bid with Nasdaq-listed Steel Dynamics to acquire 100% of BlueScope Steel, which would see SGH on-sell BlueScope’s North American operations to Steel Dynamics, while retaining the remaining 'Australia and rest-of-world' operations.
SGH and Steel Dynamics said at the time that there was no certainty that the proposal would result in a transaction and is subject to customary conditions.
What they said: “Let me be clear – this proposal was an attempt to take BlueScope from its shareholders on the cheap. It drastically undervalued our world-class assets, our growth momentum, and our future – and the Board will not let that happen," BlueScope chair Jane McAloon said in a statement to the ASX late on Wednesday.
"This is the fourth time we've said no, and the answer remained the same – BlueScope is worth considerably more than what was on the table."
“The BlueScope team is well recognised for driving and delivering value for our shareholders and customers. Since its restructure was completed in financial year 2017, BlueScope has invested over $3.7 billion in growth projects, delivered over $3.8 billion of shareholder returns and achieved an 18% average return on invested capital.
“Under the experienced leadership of the incoming MD&CEO, Tania Archibald, the Board is highly confident that management will continue to deliver superior shareholder value.”
The source: ASX
