Seven Group Holdings (SGH) remains open to discussions with BlueScope Steel’s board, despite labelling its $14.2 billion joint buyout proposal as its ‘best and final’ offer. SGH, led by chief executive Ryan Stokes, believes BlueScope shareholders must determine the worth of their shares. Seven Group Holdings is an Australian diversified operating and investment group with interests in industrial services, media, and energy. BlueScope is a steel manufacturing company.
Stokes emphasised the offer represented a ‘very fair and full premium’ during The Australian Financial Review Business Summit on Wednesday. He reiterated that the ‘best and final’ designation was intended to be clear from the outset. SGH’s bidding partner, Steel Dynamics, an American steel company, shares this sentiment.
The latest bid from SGH and Steel Dynamics is valued at $34 per share. However, BlueScope Steel has contested this valuation, arguing the offer is effectively $31 per share, accounting for the company’s planned $3 per share return to shareholders this year.
Stokes stated SGH needs to ensure value creation through any acquisition. He added that Steel Dynamics shares this perspective, highlighting the importance of strategic alignment in the joint bid. The situation remains fluid as both companies navigate negotiations and shareholder considerations.
