Mike Henry, BHP Chief Executive Officer said:
"BHP will not be making a firm offer for Anglo American. BHP is committed to its Capital Allocation Framework and maintains a disciplined approach to mergers and acquisitions.
While we believed that our proposal for Anglo American was a compelling opportunity to effectively grow the pie of value for both sets of shareholders, we were unable to reach agreement with Anglo American on our specific views in respect of South African regulatory risk and cost and, despite seeking to engage constructively and numerous requests, we were not able to access from Anglo American key information required to formulate measures to address the excess risk they perceive
We remain of the view that our proposal was the most effective structure to deliver value for Anglo American shareholders, and we are confident that, working together with Anglo American, we could have obtained all required regulatory approvals, including in South Africa."
Mike Henry, BHP Chief Executive Officer said:
"BHP will not be making a firm offer for Anglo American. BHP is committed to its Capital Allocation Framework and maintains a disciplined approach to mergers and acquisitions.
While we believed that our proposal for Anglo American was a compelling opportunity to effectively grow the pie of value for both sets of shareholders, we were unable to reach agreement with Anglo American on our specific views in respect of South African regulatory risk and cost and, despite seeking to engage constructively and numerous requests, we were not able to access from Anglo American key information required to formulate measures to address the excess risk they perceive
We remain of the view that our proposal was the most effective structure to deliver value for Anglo American shareholders, and we are confident that, working together with Anglo American, we could have obtained all required regulatory approvals, including in South Africa."
Thank you, I've seen the BHP RNS now....
The terms of the proposal represent a total value, based on spot share prices and FX rates6 as at 22 May 2024 for BHP and 21 May 2024 for Anglo Platinum and Kumba, of approximately £31.11 per Anglo American ordinary share including £5.40 in Anglo Platinum shares, £4.23 in Kumba shares and £21.48 per share for Anglo American's unlisted assets, valuing Anglo American's share capital at approximately £38.6 billion
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.
There was an RNS last night but the RNS page on this site has not been updated - sometimes better to go to a more robust source...
https://www.londonstockexchange.com/news-article/VOD/transaction-in-own-shares/16474785
Https://www.investormeetcompany.com/investor/meeting/investor-presentation-378
This is my take only. I have been here since 2011, have heard it all, have lost lots (on paper at least) and am still in dispirited mode, hence my downbeat review. However, on a positive note, we are in safe hands and if I were a brand new investor coming in at these prices and didn't mind being locked into this price for the next 1 to 4 years, I would be a happy man today....
Nothing really that you haven't seen or heard already to be honest. Yes it satisfied the questions around financing, so that helped me to breath a sigh of relief and with backdated £8m from Calvally, which will be used to fund any additional work to get through the CP funding process for Phase 2, I am further reassured, as Phase 2 is key to the ongoing success of the project, the company and we little people!.Where I am frustrated is that Graham finished by saying they hope to get all funding completed within the next 6 months! So much for the Phase 2 conditions having to be met by end September (according to RNS), or am I missing something? So of course no timelines could be given for anything until both P1/P2 funding is agreed and available (fair enough) but the mood music wasn't optimistic on timings apart from drilling TE4 Horst which they say they want to get their teeth into as soon as P1 funding is concluded (whenever the 45 day period is over and funding released) - but he did caveat this by saying they do have a year before the need to drill. Sidi Moktar - same old story (we need to get the seismic done before we drill and need to get permits sorted first) It was John Argent who told me in about 2016ish that they were in advanced talks with a number of farm in partners to do this work (tumbleweed still passing through that area) but Sound have buried any questions on this for years so I'm still not convinced they actually see any value in this concession other than the gravitas it gives for potential investors in Sound. First gas - having changed timelines about 4 times on this now in the last year (remember when it was late 2023, then early 2024, then Q1 2024?) well this time they just said "2024." Phase 2 - There are some issues with some components that they are a little behind with, which I read to mean "Get ready for another delay to net revenues from 2026 to 2027.. I have no evidence to support this but there was no "Firm" commitment/s to get this back on track and no commitment to refresh the date (Of course I want them in catch up mode but experience tells me otherwise). I also cannot see a clear path to drilling SBK and Anoual. They say they are or have been talking to other farm in partners but that's all we got really so very poor on that front and where was John Argent to give an update on his drilling prospectus? As ever with these events, there are more questions than answers even though I do understand they have to be careful until funding/FID is approved, I always feel they purposely don't commit to certain timelines, as they are invariably wrong. Once the financing is in place, they will have nowhere left to hide!
Large sells have been pushed through for weeks now, so someone/body has been keen to take out their investment. I'd love to know who it is and when it will end but I guess until it stops the SP will continue to fall.. That's the markets!!