Anglo American’s Board has rejected a third unsolicited takeover proposal from BHP Group Limited and extended the Put Up or Shut Up (PUSU) deadline to 29th May 2024. The proposal, received on 20th May 2024, offered Anglo American shareholders 0.8860 BHP shares and shares in Anglo American Platinum Limited and Kumba Iron Ore Limited, valuing each Anglo American share at approximately £29.34 based on prices as of 23rd April 2024.
The Board found the proposal’s complex structure—requiring demergers of Anglo American’s stakes in Anglo American Platinum Limited and Kumba Iron Ore Limited—highly conditional and fraught with execution risks. Previous similar proposals were also rejected on 26th April and 13th May 2024.
Stuart Chambers, Chairman of Anglo American, said: “The Board is confident in Anglo American’s standalone future prospects and believes that Anglo American has set out a clear pathway and timeframe to deliver the acceleration of its strategy to unlock significant and undiluted value for Anglo American’s shareholders. The Board considered BHP’s Latest Proposal carefully, concluded it does not meet expectations of value delivered to Anglo American’s shareholders, and has unanimously rejected it.
“In particular, it does not address the Board’s concerns about the structure, which results in significant complexity, execution risks, an extended timeline to completion and consequently has the potential for material value leakage to be disproportionately suffered by Anglo American’s shareholders. Multiple engagements with the BHP team have not yet been able to resolve the concerns on these issues.
“However, the Board is willing to continue to engage with BHP and its advisers on this topic and has therefore requested a one week extension to the PUSU deadline which has been consented to by the Panel.”