Wrap Text
Anglo American rejects further BHP proposal and extends PUSU deadline to 29 May 2024
Anglo American plc (the "Company")
Registered office: 17 Charterhouse Street, London EC1N 6RA
Registered number: 3564138 (incorporated in England and Wales)
Legal Entity Identifier: 549300S9XF92D1X8ME43
ISIN: GBOOB1XZS820
JSE Share Code: AGL
NSX Share Code: ANM
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN,
INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE
RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.
THIS ANNOUNCEMENT IS NOT AN ANNOUNCEMENT OF A FIRM INTENTION TO MAKE AN OFFER UNDER
RULE 2.7 OF THE CITY CODE ON TAKEOVERS AND MERGERS (THE "CODE"). THERE CAN BE NO CERTAINTY
THAT ANY FIRM OFFER WILL BE MADE AND, SAVE AS SET OUT IN BHP'S ANNOUNCEMENT DATED 13 MAY
2024 (AND SUBJECT TO THE RESERVATIONS SET OUT THEREIN), THERE CAN BE NO CERTAINTY AS TO THE
TERMS ON WHICH AN OFFER MAY BE MADE.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.
22 May 2024
Anglo American rejects further BHP proposal and extends PUSU deadline to 29 May 2024
On 20 May 2024, the Board of Anglo American (the "Board") received a third unsolicited, non-binding
and highly conditional takeover proposal from BHP Group Limited ("BHP") (the "Latest Proposal").
Under the terms of the Latest Proposal, for each Anglo American share owned, Anglo American's
shareholders would receive:
- 0.8860 BHP shares; and
- Ordinary shares in each of Anglo American Platinum Limited and of Kumba Iron Ore Limited
(distributed by Anglo American to its shareholders in direct proportion to Anglo American's
shareholders' effective interest in Anglo American Platinum Limited and Kumba Iron Ore
Limited).
The terms of the Latest Proposal represent a total value, based on undisturbed share prices as at market
close on 23 April 2024, of approximately £29.34 per Anglo American share. On the basis of the 30-day
and 90-day volume weighted average share prices up to and including 23 April 2024, the terms of the
Latest Proposal would value Anglo American at £29.91 and £29.67 per Anglo American share, respectively.
The Latest Proposal includes the same highly complex structure as the proposals previously rejected on
26 April 2024 and 13 May 2024. This involves an all-share offer for Anglo American by BHP, with a
requirement for Anglo American to complete two separate demergers of its entire shareholdings in Anglo
American Platinum Limited and Kumba Iron Ore Limited to Anglo American's shareholders. The all-share
offer and required demergers would be inter-conditional.
The Board and its advisers have engaged with BHP and its advisers on multiple occasions with a particular
focus on the proposed structure and associated risks. The Board continues to believe that there are
serious concerns with the structure given that it is likely to result in material completion risk and value
impact that disproportionately falls on Anglo American's shareholders.
The requirement to pursue two contemporaneous demergers of publicly listed companies alongside a
takeover and the inter-conditional nature of the three transactions is unprecedented, and as a result of
a takeover would result in additional material approvals and conditions, particularly in South Africa. BHP's
Latest Proposal is therefore in clear contrast to Anglo American's simpler standalone plan to accelerate
value delivery announced on 14 May 2024 and its proposal to demerge Anglo American Platinum Limited
– a single demerger that Anglo American has a proven track record in delivering.
The complex process proposed by BHP is likely to take 18 months or more to complete and carries
significant execution and completion risks relating to both value and time. The key elements of Anglo
American's standalone plan to accelerate value delivery are expected to be substantively complete by
that stage. The approvals required in relation to BHP's Latest Proposal will also likely result in conditions
being imposed that disproportionately impact Anglo American Platinum Limited and Kumba Iron Ore
Limited and, therefore, Anglo American's shareholders.
In addition, the Board has also considered detailed feedback from its extensive engagement with Anglo
American's shareholders and stakeholders since the release of Anglo American's accelerated plans for
delivery of its standalone strategy on 14 May 2024, continuing its engagement with its shareholders since
the approach from BHP became public on 24 April 2024.
The Board is confident in Anglo American's standalone future prospects and believes that Anglo American
has set out a clear pathway to deliver the acceleration of its strategy detailed on 14 May 2024, that is
expected to unlock significant and undiluted value for Anglo American's shareholders.
Taking the above considerations into account, the Board of Anglo American has unanimously rejected
the Latest Proposal.
In order to allow for further engagement with BHP on the mitigation of risks and value impact on Anglo
American's shareholders that are inherent in its Latest Proposal, Anglo American announces that, in
accordance with Rule 2.6(c) of the Code, the Board has requested, and the Panel on Takeovers and
Mergers (the "Panel") has consented to, an extension to the date by which BHP is required either to
announce a firm intention to make an offer for Anglo American in accordance with Rule 2.7 of the Code
or to announce that it does not intend to make an offer, in which case the announcement will be treated
as a statement to which Rule 2.8 of the Code applies. Such announcement must now be made by not
later than 5.00 p.m. on 29 May 2024. This deadline will only be extended with the consent of the Panel
in accordance with Rule 2.6(c) of the Code.
Stuart Chambers, Chairman of Anglo American, commented:
"The Board is confident in Anglo American's standalone future prospects and believes that Anglo
American has set out a clear pathway and timeframe to deliver the acceleration of its strategy to unlock
significant and undiluted value for Anglo American's shareholders. The Board considered BHP's Latest
Proposal carefully, concluded it does not meet expectations of value delivered to Anglo American's
shareholders, and has unanimously rejected it. In particular, it does not address the Board's concerns
about the structure, which results in significant complexity, execution risks, an extended timeline to
completion and consequently has the potential for material value leakage to be disproportionately
suffered by Anglo American's shareholders. Multiple engagements with the BHP team have not yet been
able to resolve the concerns on these issues.
"However, the Board is willing to continue to engage with BHP and its advisers on this topic and has
therefore requested a one week extension to the PUSU deadline which has been consented to by the
Panel."
There can be no certainty that any firm offer will be made and, save as set out in BHP's announcement
dated 13 May 2024 (and subject to the reservations set out therein), there can be no certainty as to the
terms on which an offer may be made.
This announcement is being made without the agreement or approval of BHP.
For further information, please contact:
Media Investors
UK UK
James Wyatt-Tilby Tyler Broda
james.wyatt-tilby@angloamerican.com tyler.broda@angloamerican.com
Tel: +44 (0)20 7968 8759 Tel: +44 (0)20 7968 1470
Marcelo Esquivel Emma Waterworth
marcelo.esquivel@angloamerican.com emma.waterworth@angloamerican.com
Tel: +44 (0)20 7968 8891 Tel: +44 (0) 20 7968 8574
Rebecca Meeson–Frizelle Juliet Newth
rebecca.meeson-frizelle@angloamerican.com juliet.newth@angloamerican.com
Tel: + 44 (0)20 7968 1374 Tel: +44 (0)20 7968 8830
South Africa Michelle Jarman
Nevashnee Naicker michelle.jarman@angloamerican.com
nevashnee.naicker@angloamerican.com Tel: +44 (0)20 7968 1494
Tel: +27 (0)11 638 3189
Sibusiso Tshabalala
sibusiso.tshabalala@angloamerican.com
Tel: +27 (0)11 638 2175
The Company has a primary listing on the Main Market of the London Stock Exchange and
secondary listings on the Johannesburg Stock Exchange, the Botswana Stock Exchange, the
Namibia Stock Exchange and the SIX Swiss Exchange.
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Centerview Partners UK LLP (Financial Adviser to Anglo American)
James Hartop Tel: +44 (0) 20 7409 9700
Edward Rowe
Fiona McHardy
Goldman Sachs International (Financial Adviser to Anglo American)
Mark Sorrell Tel: +44 (0) 20 7774 1000
David Hammond
Bertie Whitehead
Morgan Stanley & Co. International plc (Financial Adviser to Anglo American)
Simon Smith Tel: +44 (0) 20 7425 8000
Anthony Zammit
Tom Perry
The person responsible for this announcement is Richard Price, Legal & Corporate Affairs Director
(Company Secretary), Anglo American plc.
Sources and Bases
1. The total value of the Latest Proposal is based on share prices of BHP, Anglo American
Platinum Limited and Kumba Iron Ore Limited as at market close on 23 April 2024, and
GBP/AUD and GBP/ZAR exchange rates of 1.9190 and 23.7971, respectively as at 23 April
2024.
2. Volume weighted average prices are derived from Bloomberg.
3. The number of fully diluted Anglo American shares assumed excludes "Own Shares" as
defined in Anglo American's 2023 annual report.
IMPORTANT NOTICES
Centerview Partners UK LLP ("Centerview"), which is authorised and regulated in the United
Kingdom by the Financial Conduct Authority, is acting exclusively as financial adviser to Anglo
American and no one else in connection with the matters set out in this announcement and will
not be responsible to anyone other than Anglo American for providing the protections afforded to
its clients or for providing advice in relation to the contents of this announcement or any other
matters referred to in this announcement. Neither Centerview nor any of its affiliates, nor any of
Centerview's and such affiliates' respective members, directors, officers, controlling persons or
employees owes or accepts any duty, liability or responsibility whatsoever (whether direct or
indirect, consequential, whether in contract, in tort, in delict, under statute or otherwise) to any
person who is not a client of Centerview in connection with this announcement, any statement
contained herein or otherwise.
Goldman Sachs International, ("Goldman Sachs") which is authorised by the Prudential
Regulation Authority and regulated by the Financial Conduct Authority and the Prudential
Regulation Authority in the United Kingdom, is acting exclusively for Anglo American and no one
else in connection with the matters referred to in this announcement and will not be responsible
to anyone other than Anglo American for providing the protections afforded to clients of Goldman
Sachs International, or for providing advice in relation to the matters referred to in this
announcement.
Morgan Stanley & Co. International plc ("Morgan Stanley") which is authorised by the Prudential
Regulation Authority and regulated by the Financial Conduct Authority and the Prudential
Regulation Authority in the UK is acting as financial adviser to Anglo American and no one else
in connection with the matters set out in this announcement. In connection with such matters,
Morgan Stanley, its affiliates and their respective directors, officers, employees and agents will
not regard any other person as their client, nor will they be responsible to any other person for
providing the protections afforded to their clients or for providing advice in relation to the contents
of this announcement or any other matter referred to herein.
General information
In accordance with Rule 26.1 of the Code, a copy of this announcement will be available subject
to certain restrictions relating to persons resident in restricted jurisdictions on Anglo American's
website at www.angloamerican.com by no later than 12 noon (London time) on the business day
following the date of this announcement. The content of the website referred to in this
announcement is not incorporated into and does not form part of this announcement.
The release, publication or distribution of this announcement in jurisdictions outside the United
Kingdom may be restricted by law or regulation and therefore persons into whose possession
this announcement comes should inform themselves about, and observe, such restrictions. Any
failure to comply with the restrictions may constitute a violation of the securities laws or
regulations of any such jurisdictions.
Disclosure requirements of the Code
Under Rule 8.3(a) of the Code, any person who is interested in 1% or more of any class of
relevant securities of an offeree company or of any securities exchange offeror (being any offeror
other than an offeror in respect of which it has been announced that its offer is, or is likely to be,
solely in cash) must make an Opening Position Disclosure following the commencement of the
offer period and, if later, following the announcement in which any securities exchange offeror is
first identified. An Opening Position Disclosure must contain details of the person's interests and
short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree
company and (ii) any securities exchange offeror(s). An Opening Position Disclosure by a person
to whom Rule 8.3(a) applies must be made by no later than 3.30 pm (London time) on the 10th
business day following the commencement of the offer period and, if appropriate, by no later than
3.30 pm (London time) on the 10th business day following the announcement in which any
securities exchange offeror is first identified. Relevant persons who deal in the relevant securities
of the offeree company or of a securities exchange offeror prior to the deadline for making an
Opening Position Disclosure must instead make a Dealing Disclosure.
Under Rule 8.3(b) of the Code, any person who is, or becomes, interested in 1% or more of any
class of relevant securities of the offeree company or of any securities exchange offeror must
make a Dealing Disclosure if the person deals in any relevant securities of the offeree company
or of any securities exchange offeror. A Dealing Disclosure must contain details of the dealing
concerned and of the person's interests and short positions in, and rights to subscribe for, any
relevant securities of each of (i) the offeree company and (ii) any securities exchange offeror(s),
save to the extent that these details have previously been disclosed under Rule 8. A Dealing
Disclosure by a person to whom Rule 8.3(b) applies must be made by no later than 3.30 pm
(London time) on the business day following the date of the relevant dealing.
If two or more persons act together pursuant to an agreement or understanding, whether formal
or informal, to acquire or control an interest in relevant securities of an offeree company or a
securities exchange offeror, they will be deemed to be a single person for the purpose of Rule
8.3.
Opening Position Disclosures must also be made by the offeree company and by any offeror and
Dealing Disclosures must also be made by the offeree company, by any offeror and by any
persons acting in concert with any of them (see Rules 8.1, 8.2 and 8.4).
Details of the offeree and offeror companies in respect of whose relevant securities Opening
Position Disclosures and Dealing Disclosures must be made can be found in the Disclosure Table
on the Takeover Panel's website at www.thetakeoverpanel.org.uk, including details of the
number of relevant securities in issue, when the offer period commenced and when any offeror
was first identified. You should contact the Panel's Market Surveillance Unit on +44 (0) 20 7638
0129 if you are in any doubt as to whether you are required to make an Opening Position
Disclosure or a Dealing Disclosure.
Notes to editors:
Anglo American is a leading global mining company and our products are the essential ingredients in
almost every aspect of modern life. Our portfolio of world-class competitive operations, with a broad
range of future development options, provides many of the future-enabling metals and minerals for a
cleaner, greener, more sustainable world and that meet the fast growing every day demands of billions
of consumers. With our people at the heart of our business, we use innovative practices and the latest
technologies to discover new resources and to mine, process, move and market our products to our
customers – safely and sustainably.
As a responsible producer of copper, nickel, platinum group metals, diamonds (through De Beers), and
premium quality iron ore and steelmaking coal – with crop nutrients in development – we are committed
to being carbon neutral across our operations by 2040. More broadly, our Sustainable Mining Plan
commits us to a series of stretching goals to ensure we work towards a healthy environment, creating
thriving communities and building trust as a corporate leader. We work together with our business
partners and diverse stakeholders to unlock enduring value from precious natural resources for the
benefit of the communities and countries in which we operate, for society as a whole, and for our
shareholders. Anglo American is re-imagining mining to improve people's lives.
www.angloamerican.com
In this document, references to "Anglo American", the "Anglo American Group", the "Group", "we", "us", and "our"
are to refer to either Anglo American plc and its subsidiaries and/or those who work for them generally, or where it
is not necessary to refer to a particular entity, entities or persons. The use of those generic terms herein is for
convenience only, and is in no way indicative of how the Anglo American Group or any entity within it is structured,
managed or controlled. Anglo American subsidiaries, and their management, are responsible for their own day-to-
day operations, including but not limited to securing and maintaining all relevant licences and permits, operational
adaptation and implementation of Group policies, management, training and any applicable local grievance
mechanisms. Anglo American produces group-wide policies and procedures to ensure best uniform practices and
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policies. Such policies and procedures constitute prescribed minimum standards only. Group operating subsidiaries
are responsible for adapting those policies and procedures to reflect local conditions where appropriate, and for
implementation, oversight and monitoring within their specific businesses.
Disclaimer
This document is for information purposes only and does not constitute, nor is to be construed as, an offer to sell or
the recommendation, solicitation, inducement or offer to buy, subscribe for or sell shares in Anglo American or any
other securities by Anglo American or any other party. Further, it should not be treated as giving investment, legal,
accounting, regulatory, taxation or other advice and has no regard to the specific investment or other objectives,
financial situation or particular needs of any recipient.
Forward-looking statements and third party information
This document includes forward-looking statements. All statements other than statements of historical facts included
in this document, including, without limitation, those regarding Anglo American's financial position, business,
acquisition and divestment strategy, dividend policy, plans and objectives of management for future operations,
prospects and projects (including development plans and objectives relating to Anglo American's products,
production forecasts and Ore Reserve and Mineral Resource positions) and sustainability performance related
(including environmental, social and governance) goals, ambitions, targets, visions, milestones and aspirations, are
forward-looking statements. By their nature, such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance or achievements of Anglo American
or industry results to be materially different from any future results, performance or achievements expressed or
implied by such forward-looking statements.
Such forward-looking statements are based on numerous assumptions regarding Anglo American's present and
future business strategies and the environment in which Anglo American will operate in the future. Important factors
that could cause Anglo American's actual results, performance or achievements to differ materially from those in the
forward-looking statements include, among others, levels of actual production during any period, levels of global
demand and commodity market prices, unanticipated downturns in business relationships with customers or their
purchases from Anglo American, mineral resource exploration and project development capabilities and delivery,
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natural catastrophes or adverse geological conditions, climate change and extreme weather events, the outcome of
litigation or regulatory proceedings, the availability of mining and processing equipment, the ability to obtain key
inputs in a timely manner, the ability to produce and transport products profitably, the availability of necessary
infrastructure (including transportation) services, the development, efficacy and adoption of new or competing
technology, challenges in realising resource estimates or discovering new economic mineralisation, the impact of
foreign currency exchange rates on market prices and operating costs, the availability of sufficient credit, liquidity
and counterparty risks, the effects of inflation, terrorism, war, conflict, political or civil unrest, uncertainty, tensions
and disputes and economic and financial conditions around the world, evolving societal and stakeholder
requirements and expectations, shortages of skilled employees, unexpected difficulties relating to acquisitions or
divestitures, competitive pressures and the actions of competitors, activities by courts, regulators and governmental
authorities such as in relation to permitting or forcing closure of mines and ceasing of operations or maintenance of
Anglo American's assets and changes in taxation or safety, health, environmental or other types of regulation in the
countries where Anglo American operates, conflicts over land and resource ownership rights and such other risk
factors identified in Anglo American's most recent Annual Report. Forward-looking statements should, therefore, be
construed in light of such risk factors and undue reliance should not be placed on forward-looking statements. These
forward-looking statements speak only as of the date of this document. Anglo American expressly disclaims any
obligation or undertaking (except as required by applicable law, the City Code on Takeovers and Mergers, the UK
Listing Rules, the Disclosure and Transparency Rules of the Financial Conduct Authority, the Listings Requirements of
the securities exchange of the JSE Limited in South Africa, the SIX Swiss Exchange, the Botswana Stock Exchange and
the Namibian Stock Exchange and any other applicable regulations) to release publicly any updates or revisions to
any forward-looking statement contained herein to reflect any change in Anglo American's expectations with regard
thereto or any change in events, conditions or circumstances on which any such statement is based.
Nothing in this document should be interpreted to mean that future earnings per share of Anglo American will
necessarily match or exceed its historical published earnings per share. Certain statistical and other information
included in this document is sourced from third party sources (including, but not limited to, externally conducted
studies and trials). As such it has not been independently verified and presents the views of those third parties, but
may not necessarily correspond to the views held by Anglo American and Anglo American expressly disclaims any
responsibility for, or liability in respect of, such information.
©Anglo American Services (UK) Ltd 2024. AngloAmerican TM and TM are trademarks of Anglo AmericanServices (UK) Ltd.
Legal Entity Identifier: 549300S9XF92D1X8ME43
Date: 22-05-2024 03:54:00
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