BlueScope to pay $438m special dividend after JV, property sales
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The news: Steelmaker BlueScope has announced plans to pay shareholders $438 million worth of special dividends following recent sales and property group projects, including the divestment of its 50% interest in a joint venture with Tata Steel.
The numbers: The unfranked special dividend of $1 per share will have a record date of 21 January 2026 and be paid on 24 February. Shares will trade ex-dividend from 20 January and the steelmaker’s dividend reinvestment plan will not be active.
Surplus cash was generated from the sale of BlueScope’s interest in the Tata BlueScope joint venture for $167 million, the agreement to sell 33 hectares of land at West Dapto for $76 million and realisation of projects in the BlueScope Properties Group that delivered around $200 million over FY25 and FY26.
The context: The company said the special dividend was selected by the board to return surplus cash as “the operation of the on-market buy-back is currently not available in light of corporate activity and regulatory settings”.
BlueScope’s board rejected a $13 billion takeover proposal received from SGH and US-based Steel Dynamics as “highly opportunistic” on 7 January.
BlueScope expects its free cash generation to expand over the next 12 to 18 months and expects to reduce capex by at least $500 million in FY27 relative to FY26.
The company also flagged its “strong track record in balancing growth and returns, having invested $3.7 billion in growth projects and delivered over $3.8 billion in shareholder returns since FY2017”.
What they said: “This special dividend demonstrates BlueScope’s ability to generate and distribute returns to its shareholders,” BlueScope managing director and CEO Mark Vassella said.
“With a clear line of sight to the completion of our current significant capital investment program, BlueScope is positioned to not only return to the robust cash generation it has been known for, but to strengthen it further with the enhanced earnings of the business.
“The Board will continue to carefully balance investment in growth with shareholders' returns as cash flows build.”
The source: ASX
