Home / Business and Economy / BlueScope Rejects Steel Dynamics' Bid, Seeks Higher Value
BlueScope Rejects Steel Dynamics' Bid, Seeks Higher Value
26 Feb
Summary
- BlueScope Steel Ltd. rejected a revised offer from Steel Dynamics and SGH.
- The current offer of A$32.35 per share is considered insufficient by the board.
- BlueScope remains open to a transaction at a price reflecting fair value.
BlueScope Steel Ltd. announced on Thursday that it has rejected a revised bid from Steel Dynamics Inc. and SGH Ltd. The proposed offer, valued at A$32.35 per share, represents a total equity value of A$15 billion ($11 billion). BlueScope's board stated that the revised proposal does not adequately address their valuation concerns, deeming the offer price insufficient for recommendation to shareholders.
The company, however, has expressed openness to a potential transaction at a price that accurately reflects its fair value. This latest development follows previous offers made by Steel Dynamics in January. Steel Dynamics is primarily interested in acquiring BlueScope's North American steel business, which contributes significantly to the company's earnings.
Under the proposed split, Steel Dynamics would acquire the North Star steelworks in Ohio and the downstream product business in North America. SGH, controlled by billionaire Kerry Stokes, would gain control of the Australian steelworks located in Port Kembla. The board's rejection indicates a significant gap between the bidders' valuation and BlueScope's perceived worth.
