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AustralianSuper Backs BlueScope’s Rebuff of A$13.2 Billion SGHSteel Dynamics Bid

The pension fund says the A$30-per-share approach undervalues BlueScope.

Overview

  • AustralianSuper, now holding 13.52% of BlueScope, endorsed the board’s rejection and said it would only support a materially higher price than A$30 a share.
  • BlueScope dismissed the SGHSteel Dynamics proposal as opportunistic, citing dividend deductions, a demand for exclusive due diligence, and reliance on substantial debt financing.
  • The offer envisaged SGH acquiring BlueScope and on-selling its North American operations to Steel Dynamics, splitting the business.
  • BlueScope shares hovered just below the offer price after the rejection, signaling investor expectations that bidders could revisit terms, according to analysts.
  • The company argued the bid ignored potential earnings upside of A$400 million to A$900 million if steel spreads and foreign exchange revert to historical averages.