BlueScope board to consider improved takeover bid by SGH, Steel Dynamics
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More news: BlueScope Steel said its board is “considering and evaluating” an improved takeover offer by SGH and Steel Dynamics, which values the group at $15 billion.
What they said: “As part of its evaluation, the board of BlueScope will consider the proposal relative to the fundamental value of the company, along with the conditionality and executability of the proposal,” the company said in a statement.
SGH and Steel Dynamics lodge ‘best and final’ bid for BlueScope
The news: Ryan Stokes-controlled SGH and Nasdaq-listed Steel Dynamics have submitted a “best and final offer” to acquire BlueScope Steel.
The numbers: The revised offer of $32.35 per share follows the suitors’ previous bid of $30 per share that was rejected by BlueScope’s board last month.
The new bid is equivalent to $34 per share, prior to deductions of $1.65, consisting of BlueScope’s $1-per-share special dividend and 65 cent-per-share interim dividend.
The consideration represents a total equity value for BlueScope of $15 billion, to be comprised entirely of cash.
The context: SGH and Steel Dynamics said they “look forward to productive engagement” with BlueScope, having previously criticised management for failing to engage constructively.
The suitors outlined the same terms as the previous offer, with SGH planning to on-sell BlueScope’s North American operations to Steel Dynamics, with SGH retaining the remaining “Australia + Rest of World” operations.
