Key Moments
- BlueScope rejected a conditional acquisition proposal valuing the company at $30 per share.
- The board concluded the offer significantly undervalued BlueScope’s assets and growth prospects.
- BlueScope said the proposal did not reflect the anticipated earnings recovery from cyclical steel spreads.
Offer From SGH and Steel Dynamics Turned Down
Investing.com – BlueScope has declined a conditional takeover proposal from a consortium comprising SGH and Steel Dynamics that placed a value of $30 per share on the company.
According to a statement from BlueScope, the board determined that the suggested purchase price did not adequately reflect the value of the business. The steel producer said the proposal significantly undervalued the company.
Board Cites Asset Value and Growth Outlook
BlueScope highlighted several reasons for its decision to reject the proposal. The company pointed to what it described as undervaluation of its asset base as well as its ongoing growth as key factors behind the board’s stance.
The statement also emphasized that the proposal did not properly recognize the expected future earnings recovery linked to cyclical steel spreads.
Unanimous Board Decision
BlueScope said the board’s resolution to turn down the takeover approach from the SGH and Steel Dynamics consortium was unanimous.
| Aspect | Details |
|---|---|
| Bidder | Consortium of SGH and Steel Dynamics |
| Offer Type | Conditional takeover proposal |
| Offer Price | $30 per share |
| Board Assessment | Significantly undervalued the company |
| Key Reasons for Rejection | Undervaluation of assets, ongoing growth, and expected future earnings recovery from cyclical steel spreads |
| Board Decision | Unanimous rejection |
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
