The BlueScope Steel Ltd (ASX: BSL) share price is in focus today after the company confirmed it has received a $30-per-share cash takeover proposal from an Australian and US consortium, including SGH Ltd (ASX: SGH) and Steel Dynamics (NASDAQ: STLD). The non-binding bid is subject to a range of conditions and follows several earlier bids that BlueScope previously rejected.
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What did BlueScope report?
- Received an unsolicited, indicative takeover offer at $30.00 per share in cash
- The proposal comes from a consortium comprising SGH and Steel Dynamics
- The arrangement would see SGH acquire BlueScope, then on-sell its North American businesses to Steel Dynamics
- Bid is subject to due diligence, Board recommendation, shareholder and regulatory approval, and other conditions
- BlueScope has previously rejected three similar unsolicited approaches valuing shares up to $29.00 each
What else do investors need to know?
BlueScope's Board and advisers are carefully reviewing the latest proposal, weighing it against the company's underlying value and long-term strategy. The Board points to BlueScope's portfolio of quality assets, expected cash flow increases, and $2.3 billion committed to sustainable earnings growth as key factors in their evaluation.
Previous bids were knocked back for undervaluing BlueScope and coming with significant execution risks, including uncertainties around regulatory outcomes. The company has made it clear that shareholders need not take any action for now.
What's next for BlueScope?
BlueScope's Board says it is committed to optimising shareholder value and regularly reviewing all options to accelerate value realisation. The company is continuing to deliver on its capital pipeline, pursue productivity improvements, and realise value from major landholdings.
Any future developments regarding the takeover proposal will be shared as required under BlueScope's disclosure obligations. For now, the Board is focused on thorough due diligence and protecting shareholders' interests.
BlueScope share price snapshot
Over the past 12 months, BlueScope shares have risen 29%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.
