By Scott Murdoch
SYDNEY, Jan 9 (Reuters) – BlueScope Steel’s largest investor, AustralianSuper, said on Friday it supported the Australian steelmaker’s decision to reject a $9 billion takeover offer from SGH and U.S-based Steel Dynamics.
The pension fund holds 13.52% of BlueScope, after announcing on Thursday its stake had increased from 12.5%.
BlueScope on Wednesday rejected the SGH and Steel Dynamics $A30 per share offer, saying it “very significantly undervalued” the company and accused the acquirors of trying to buy BlueScope “on the cheap”
“We support the BlueScope board’s decision to reject the offer and to remain focused on executing the company’s strategy without distraction,” an AustralianSuper spokesperson said.
“The current offer for BlueScope does not reflect what we presently believe is the underlying value of the business. Based on our current valuation, we would only support a transaction that was materially higher than the price of A$30 per share currently proposed.”
BlueScope and SGH did not immediately respond to a request for comment on AustralianSuper’s statement.
Australian pension funds are playing an increasingly active role in corporate buyouts with AustralianSuper scuppering Brookfield’s $10.6 billion offer for Origin Energy. The pension fund, which is Australia’s largest, said at the time the bid undervalued Origin.
(Reporting by Scott Murdoch; Editing by Cynthia Osterman)
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