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SGH, Steel Dynamics Bid $10.6 Billion for BlueScope Steel but Investors Remain Wary
SGH and Steel Dynamics raised their bid to A$32.35 per share valuing BlueScope at A$15 billion in a plan to split the company by region, after prior offers were rejected.
- On Wednesday, SGH and Steel Dynamics lodged a best-and-final $32.35-per-share bid, valuing BlueScope at about $15 billion.
- Earlier approaches, including a $28.35-per-share offer, were unanimously rejected as significantly undervaluing BlueScope, whose shares closed at $28 on Tuesday.
- BlueScope will return $3 a share via a $150 million buyback, after reporting an 81 per cent jump in December half earnings to $558 million.
- BlueScope's board said it will evaluate the proposal relative to the company's fundamental value and the offer's conditionality and executability, noting there is no certainty it will result in a transaction and shareholders are not required to act.
- The proposal positions SGH to retain Australian operations including Port Kembla, while Steel Dynamics acquires North Star, reshaping ownership and offering an attractive premium amid stronger US steel spreads.
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Sydney Morning HeraldReposted by 
The Age
The AgeBillionaire Stokes stalks BlueScope with new $15b offer
The billionaire’s consortium delivered a higher offer which they described as “best and final” but it’s not expected to be a knock-out blow for the Australian steelmaker.
·Sydney, Australia
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Coverage Details
Total News Sources13
Leaning Left4Leaning Right1Center5Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 40%
C 50%
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