MELBOURNE (dpa-AFX) - Australian mining giant BHP (BHP.AX, BLT.L, BBL, BHP) confirmed a 31 billion pounds takeover bid for British rival Anglo American Plc. (AAUKY.PK, AAL.L).
BHP said that on 16 April 2024 it made a proposal to the Board of Directors of Anglo American regarding a potential combination to be effected by way of a scheme of arrangement.
BHP's proposal comprises an all-share offer for Anglo American subject to the pro-rata distribution by Anglo American of its entire shareholdings in Anglo American Platinum Ltd and Kumba Iron Ore Ltd to Anglo American shareholders before completion.
As per the terms of the proposal, ordinary shareholders of Anglo American would receive 0.7097 BHP shares for each ordinary share in Anglo American; and ordinary shares in Anglo Platinum and Kumba, which would be distributed by Anglo American to its shareholders in direct proportion to each shareholder's effective interest in Anglo Platinum and Kumba.
The terms of the proposal would, based on closing market prices as at 23 April 2024, being the last trading day prior to press speculation, represent a total value of about 25.08 pounds per Anglo American ordinary share including 4.86 pounds in Anglo Platinum shares and 3.40 pounds in Kumba shares, valuing Anglo American's share capital at 31.1 billion pounds.
BHP noted that the combined entity would retain its global listings on the ASX, LSE, JSE and NYSE and Anglo American shareholders would be able to benefit from the BHP's monthly share trading liquidity of approximately US$10 billion.
As per U.K. rule, BHP must, by not later than 5.00 p.m. on 22 May 2024, either announce a firm intention to make an offer for Anglo American or announce that it does not intend to make an offer. The deadline can be extended with the consent of the UK Panel on Takeovers and Mergers.
Earlier today, Anglo American confirmed that it received an unsolicited, non-binding and highly conditional combination proposal from BHP Group. It is currently reviewing the proposal with its advisers.
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