Billionaire Kerry Stokes’ business conglomerate, SGH Limited, has linked up with US steelmaker Steel Dynamics to take over and then split up Australia’s biggest steelmaker, Bluescope, in a $13 billion megadeal.
BlueScope late on Monday confirmed that in mid-December it received an unsolicited indicative takeover proposal from the two companies at a price of $30 cash per share. The deal would see SGH acquire all of BlueScope’s shares and then on-sell its North American businesses to Steel Dynamics.
BlueScope is assessing a $13 billion takeover proposal.Credit: James Davies
The offer values BlueScope at 24 per cent above its sharemarket value at the start of this week. The stock rose 1.3 per cent in Monday’s trading to $24.45 amid speculation about a bid.
“The board of BlueScope, together with management and advisers, is considering and evaluating the indicative proposal,” the steelmaker said in a statement to the ASX. It noted that the offer was subject to several conditions, including “highly conditional debt funding support,” a close assessment of its books by the bidders, a unanimous backing from the BlueScope board and approval of its shareholders, which would be asked to vote on the scheme of arrangement deal.
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The Australian steel giant also confirmed it had knocked back three separate takeover approaches involving Steel Dynamics since late 2024 as the US steelmaker was eyeing BlueScope’s North American operations.
“These approaches were rejected as they significantly undervalued BlueScope and its future prospects, and presented significant execution risk in relation to regulatory outcomes,” the board said in its statement.
Stokes’ business conglomerate would add BlueScope’s local operations to its businesses, which include Caterpillar dealer WesTrac, industrial equipment hire company Coates, building products maker Boral as well as part of gas exploration company Beach and television and publishing group Seven West Media. The company is 50.9 per cent owned by the Stokes family, with Kerry’s son Ryan Stokes running it as chief executive.
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