BlueScope Board Rejects ‘Opportunistic’ Takeover Bid from SGH–Steel Dynamics Consortium

Bluescope Steel ( (AU:BSL) ) just unveiled an announcement.

BlueScope Steel’s board has unanimously rejected an unsolicited, non-binding takeover proposal from a consortium led by SGH Limited and Steel Dynamics that sought to acquire all shares via a scheme of arrangement at an effective price below $30 per share, arguing the bid significantly undervalues the company. Chair Jane McAloon labelled the offer an opportunistic attempt to acquire BlueScope “on the cheap,” noting it is the fourth approach rebuffed by the board and that the bid fails to reflect the quality of the group’s assets, the earnings upside from a normalisation in steel spreads and FX, the benefits of a $2.3 billion capital program nearing completion, targeted earnings and cost improvements, and the potential monetisation of a 1,200-hectare land bank. The board also highlighted that the consortium’s debt-funded structure would effectively leverage BlueScope’s currently near-net-debt-free balance sheet, delivering substantial synergies to the bidders rather than existing shareholders, and reiterated its commitment to pursuing strategies that maximise long-term value while continuing to review options across the portfolio.

The most recent analyst rating on (AU:BSL) stock is a Buy with a A$27.50 price target. To see the full list of analyst forecasts on Bluescope Steel stock, see the AU:BSL Stock Forecast page.

More about Bluescope Steel

BlueScope Steel is a global steelmaker listed on the ASX, with world-class assets including significant North American operations and a large Australian land portfolio. Since a major restructuring completed in 2017, the company has focused on growth investments and capital returns, deploying more than $3.7 billion into growth projects, returning over $3.8 billion to shareholders, and delivering an average 18% return on invested capital, underlining its positioning as a disciplined, returns-focused player in the steel industry.

Average Trading Volume: 3,126,085

Technical Sentiment Signal: Strong Buy

Current Market Cap: A$10.71B

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