NGLOY - Anglo American: Sum-Of-The-Parts Valuation In Place
2024-05-31 09:36:10 ET
Summary
- BHP's takeover proposal was rejected, and Anglo American presented a new plan to unlock shareholder value.
- The company has a solid asset base with a downside cycle in PGM and De Beers. However, in a disposal situation, we estimate further upside.
- After BHP offers, we update our valuation on a sum-of-the-part methodology, increasing our target price.
These were busy days for Anglo American ( AAUKF ). Our readers and new investors need a recap of what happened last month. On 22 May, the Anglo American Board unanimously rejected a third unsolicited conditional takeover proposal from BHP Group (another company our team covers ). This offer valued Anglo American at £29.34 per share and had an equity value of £38.6 billion. Even if the proposal was rejected, Anglo American was open to dialogue and granted its rival a one-week extension to present a formal offer....
Anglo American: Sum-Of-The-Parts Valuation In Place