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BlueScope Rejects A$13.2 Billion SGHSteel Dynamics Bid as Shares Slip Below Offer Price

The board says conditions and dividend adjustments erode the headline price.

Overview

  • BlueScope knocked back the A$30-per-share cash approach from SGH and Steel Dynamics, calling it highly opportunistic and materially undervalued.
  • The proposal envisaged SGH acquiring BlueScope and on-selling its North American operations to Steel Dynamics.
  • Directors argued the offer’s value would be reduced by adjustments for future dividends and the lengthy timeline to completion.
  • The bid sought exclusive due diligence access and relied on significant debt financing, which BlueScope highlighted as execution risk.
  • Shares traded at A$29.27, down about 2% after the rejection, as analysts suggested the suitors may reassess or sweeten their terms.