NGLOY - Anglo American Rejects BHP's 'Highly Unattractive' Bid Sets Proposal Deadline For May 22 | Benzinga
Anglo American (OTCQX:NGLOY) rebuffed a $39-billion takeover proposal from BHP Group (NYSE:BHP), dismissing the offer as "highly unattractive."
What Happened: BHP’s bid, announced Thursday, April 25, involved an all-share offer. One of the conditions requires Anglo American to complete two separate demergers of its shareholdings in Anglo American Platinum (Amplats) and Kumba Iron Ore (Kumba).
The Anglo American board of directors unanimously rejected BHP’s bid, arguing it undervalues the company’s prospects.
"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,” stated Anglo board chairman Stuart Chambers.
“The proposed structure is also highly unattractive,” he added, citing “substantial uncertainty and execution risk” among shareholders and stakeholders.
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