Anglo American’s board has rejected BHP Group Limited’s third unsolicited takeover approach and extended the Put Up or Shut Up (PUSU) deadline to May 29, 2024. The proposal, received on May 20, 2024, offered Anglo American stockholders 0.8860 BHP shares as well as shares in Anglo American Platinum Limited and Kumba Iron Ore Limited, with each Anglo American share valued at about £29.34 based on prices as of April 23, 2024.
The Board determined that the proposal’s complex structure, which required demergers of Anglo American‘s holdings in Anglo American Platinum Limited and Kumba Iron Ore Limited, was highly conditional and fraught with execution risks. Previous comparable suggestions were rejected on April 26th and May 13th, 2024.
Stuart Chambers, Chairman of Anglo American, stated: “The Board is confident in Anglo American‘s standalone future prospects and believes that Anglo American has established a clear path and timeframe for accelerating its strategy to unlock significant and undiluted value for Anglo American‘s shareholders.” The Board carefully evaluated BHP’s Latest Proposal, concluded that it does not meet Anglo American shareholders’ expectations for value, and unanimously rejected it.
“In particular, it fails to address the Board’s concerns about the structure, which results in significant complexity, execution risks, an extended timeline to completion, and the potential for material value leakage to be disproportionately borne by Anglo American‘s shareholders.” Multiple discussions with the BHP team have yet to settle the concerns about these issues.
“However, the Board is willing to continue to engage with BHP and its advisers on this topic and has therefore requested a one week extension to the PUSU deadline which has been consented to by the Panel.”