From Investing.com: 2024-04-30 03:45:46

-BHP Group is considering its next move after its $39 billion takeover proposal for Anglo American was rejected. The proposed premium was 31% on Anglo’s implied value, but Anglo investors are concerned about potential losses from holding shares in South African subsidiaries.

-Anglo has rejected the proposal, stating it significantly undervalues the company and introduces uncertainty. BHP has suggested that Anglo sell its shares in units Amplats and Kumba to exit unwanted South African assets. De-merging these assets could take up to 18 months due to regulatory processes.

-If BHP’s proposal proceeds, Anglo investors could be left with shares that may take a long time to close. Amplats and Kumba’s share prices could face selling pressure if demerged, impacting shareholders unable to hold South African stocks. BHP has until May 22 to submit a binding offer and may need to sweeten its bid.

-Shareholder concerns include the risk of losses and uncertainties surrounding de-mergers and commodity prices. BHP may need to adjust its offer to appease investors. The South African central bank may not approve the transaction if Anglo de-merges its units, adding complexity to the deal.



Read more at Investing.com: As BHP weighs firm bid for Anglo, investors fret over cherry-picking assets By Reuters