Anglo American’s Board unanimously rejected the unsolicited proposal from BHP Group Limited, which was announced on 24th April. BHP’s proposal involved an all-share offer for Anglo American, contingent on Anglo American completing two separate demergers of its entire shareholdings in Anglo American Platinum Limited and Kumba Iron Ore Limited to Anglo American shareholders. The offer and demergers were interdependent.
After thorough consideration with its advisers, Anglo American’s Board concluded that the proposal significantly undervalues the company and its future potential. Additionally, the proposed structure was deemed unattractive due to its complexity and associated risks.
Stuart Chambers, Chairman of Anglo American, said: “Anglo American is well positioned to create significant value from its portfolio of high quality assets that are well aligned with the energy transition and other major demand trends. With copper representing 30% of Anglo American’s total production, and with the benefit of well-sequenced and value-accretive growth options in copper and other structurally attractive products, the Board believes that Anglo American’s shareholders stand to benefit from what we expect to be significant value appreciation as the full impact of those trends materialises.
“The BHP proposal is opportunistic and fails to value Anglo American’s prospects, while significantly diluting the relative value upside participation of Anglo American’s shareholders relative to BHP’s shareholders. The proposed structure is also highly unattractive, creating substantial uncertainty and execution risk borne almost entirely by Anglo American, its shareholders and its other stakeholders. Anglo American has defined clear strategic priorities – of operational excellence, portfolio, and growth – to deliver full value potential and is entirely focused on that delivery.”