BlueScope Steel has rejected a takeover proposal from SGH Limited and Steel Dynamics, asserting that the offer significantly undervalues the company. The unsolicited bid, pitched at $30 per share, was deemed insufficient by BlueScope, particularly when considering the intrinsic value of its assets. BlueScope is a leading international manufacturer of steel products and solutions, with a presence in Australia, New Zealand, Asia, and North America. It provides steel for buildings, infrastructure, and various manufacturing applications.
A key component of BlueScope’s valuation is its extensive portfolio of undeveloped land. The company has placed a $2.8 billion valuation on these real estate holdings, offering investors a clearer picture of the potential hidden value within the company’s assets. Much of this land comprises former industrial sites that have the potential for redevelopment or alternative uses.
Outgoing BlueScope chief executive Mark Vassella, who is set to retire next month, emphasised that the offer from SGH Limited, controlled by the Stokes family, and Steel Dynamics did not reflect the true worth of BlueScope. Tania Archibald will be taking over as CEO. The $2.8 billion valuation on the land assets provides a strong indication of why BlueScope’s board believes the takeover proposal fell short of expectations.
