Anglo investor calls for 'meaningful' changes to BHP bid

22nd May 2024 12:19

(Sharecast News) - A leading shareholder in Anglo American said on Wednesday that BHP Group's blockbuster £34bn takeover offer required "meaningful revision".

South Africa's state-controlled Public Investment Corporation has a stake of just over 7% in the UK-listed miner.

In a brief statement, it said any offer should reflect both the current embedded value of Anglo's existing assets as well as the "future optionality and benefits that BHP can derive, specifically from Anglo's unlisted assets".

Abel Sithole, chief executive, continued: "This would require a meaningful revision of the current BHP proposal, that should take into consideration the material risks hat current shareholders of both Anglo and its subsidies would have to assume over an extended time frame."

The intervention came just hours before the offer's deadline of 1700 BST.

Australia's BHP first approached Anglo in April, with a £25 per share offer. After that was rebuffed, Melbourne-based BHP made a new non-binding all-share proposal at £27.53 per share, valuing Anglo at £34bn.

However, Anglo continues to maintain that the offer undervalues the business. It has also objected to a formal offer being conditional on Anglo divesting two South African businesses, Anglo American Platinum and Kumba Iron Ore.

The PIC - which also has investments in Anglo Platinum and Kumba, as well as a 1% stake in BHP - has previously stated that mining remains a "critical part" of South Africa's economy "impacting a wide variety of stakeholders", and any bid needed to acknowledge that.

London-based Anglo was founded in South Africa in 1917. The PIC is the country's second-biggest fund manager.

As at 1330 BST, shares in Anglo were down 2% at 2,624p, while BHP's London-listed shares were down 1% at 2,395p.