US-based Steel Dynamics and Australian holding company SGH, in the “best and final” offer they presented last week, proposed USD 32.35 per share. This offer values the company's total equity at approximately USD 15 billion (USD 11 billion).
BlueScope, in its announcement made in Australia on February 26, stated that the offer does not reflect the company's fair value, saying: “The revised offer does not sufficiently address our valuation concerns. Therefore, the offer price is not sufficient for the board to recommend a scheme of arrangement to shareholders.” The board emphasized that it remains open to a potential transaction at a price that reflects BlueScope's fair value.
The company announced in January that it had previously received three separate offers from Steel Dynamics. The offers focus on BlueScope's steel operations in North America, which account for a large portion of its revenues.
Under the planned structure, Steel Dynamics would take over BlueScope's North Star BlueScope Steel facility and its downstream product operations in North America, while SGH would control the Port Kembla Steelworks facility in Australia. It is stated that Steel Dynamics and SGH plan to divide the company after a potential acquisition and manage the operations separately.
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