Is BlueScope Worth More Than $13.2 billion? Steelmaker Says No-Heres Why

Source: Kapitales Research

Highlights:

• BlueScope Steel (ASX: BSL) shares slipped ~1% after the company rejected a AU$13.2 billion takeover proposal from Stokes-backed SGH and a US steel giant, saying the offer undervalued the business.
• According to chair Jane McAloon, the board considers the bid to fall well short of BlueScope’s true worth, underlining its belief in the company’s long-term strategy and core assets.
• SGH shares fell 3.4% following the rejection, as investors reassessed the likelihood of a higher bid or a successful takeover.

Shares Slip After Major Takeover Rejection

BlueScope Steel (BSL.AX), the Australian steel giant, saw its shares dip by about 1 per cent on Thursday after rejecting a AU$13.2 billion takeover proposal from SGH Limited (controlled by Australian billionaire Kerry Stokes) and U.S.-based Steel Dynamics. At the time of writing, the steelmaker’s board and chairwoman Jane McAloon made it clear that the offer significantly undervalued the company’s future prospects and long-term potential.

Board: “We’re Worth More”

In a statement to investors, Jane McAloon emphasised that this was the fourth time the company had rebuffed approaches from the consortium, saying, “BlueScope is worth considerably more than what was on the table.” The proposed deal, which would have valued BlueScope at roughly AU$30 per share, was described by the board as a “cheap” bid that ignored the strategic value of the company’s assets.  McAloon and the board also highlighted concerns that the structure of the deal — which intended for SGH to acquire BlueScope and then offload certain assets to Steel Dynamics — would take too long to finalise and could dilute value through dividend adjustments. At the time of writing, neither SGH nor Steel Dynamics had commented publicly following the rejection.

Investor Reactions and What’s Next

Market reaction has been mixed. While shares slipped after the rejection, some analysts believe BlueScope’s underlying strengths, including solid balance sheet positions and growth opportunities — particularly in North America — suggest the company could be valued much higher over time. Major shareholders, including AustralianSuper, may play a key role if a revised bid emerges.

Why This Matters

This takeover drama highlights the tension between immediate shareholder returns through buyouts and long-term strategic growth. With BlueScope rejecting what it sees as insufficient offers, markets will be watching closely to see whether SGH and Steel Dynamics return with a more compelling proposal — or if rival bidders step into the ring.

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