A resources multinational decided one of the industry’s biggest takeover bids was not enough.
Anglo American recently refused a 31.1 billion Pound (A$59.6B) acquisition offer from BHP.
Anglo’s board of directors unanimously rejected the unsolicited scheme of arrangement that values each share at 25.08 Pounds (A$48.03), representing a 14 per cent premium at the time.
“The board has considered the proposal with its advisers and concluded that the proposal significantly undervalues Anglo American and its future prospects. In addition, the proposal contemplates a structure, which the board believes is highly unattractive … given the uncertainty and complexity inherent in the proposal – and significant execution risks,” the company said in a public statement.
“The board has therefore unanimously rejected the proposal … [and] Anglo American shareholders are advised to take no action.”
Anglo chairman Stuart Chambers slammed BHP’s offer as “opportunistic” and for failing to value his employer’s “prospects”.
“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,” he said.
Anglo currently operates the following Queensland sites:
- Aquila, 302km west of Rockhampton
- Capcoal, 295km west of Rockhampton
- Dawson, 175km south of Rockhampton
- Grosvenor, 199km southwest of Mackay
- Moranbah North, 211km southwest of Mackay
- Gemco (Samancor), 650km east of Darwin.
Add Comment