BlueScope Steel Ltd said it is reviewing a revised, non-binding indicative offer from a consortium comprising SGH Ltd and Steel Dynamics Inc., which proposes to acquire 100pct of BlueScope.
The proposal values BlueScope’s equity at USD 11 bln, with consideration to be paid entirely in cash. Under the structure outlined, SGH would acquire BlueScope and subsequently on-sell the company’s North American operations to Steel Dynamics.
BlueScope said its board is considering and evaluating the offer, including an assessment against the company’s fundamental value, as well as the conditionality and executability of the proposal.
The revised offer follows the consortium’s earlier bid submitted in December, which BlueScope rejected on the basis that it materially undervalued the company. The initial proposal was pitched at AUD 30 (USD 21.2) per share, compared with the current indicative price of AUD 32.35 (USD 22.9) per share.
BlueScope operates as a flat steel producer catering to domestic Australian, New Zealand, and US markets, has an annual production capacity of around 3 mln tons of crude steel. The company specializes in manufacturing slab, HRC, plate, and coated steel products.
1 USD / 1.41 AUD
