(Photo by Gallo Images/Sharon Seretlo)
The Public Investment Corporation (PIC) says BHP’s takeover offer for Anglo requires a “meaningful revision” if it is to be considered by the state-owned asset manager, which is a shareholder in both mining companies.
The PIC’s clarification of its position comes just hours ahead of an 18:00 deadline for BHP to either submit a binding takeover offer to Anglo American’s board or to walk away from the negotiating table for six months. In terms of the UK Takeover code, there is also a possibility that Anglo could grant BHP an extension.
In a statement released on Wednesday afternoon, the PIC – which manages the Government Employees Pension Fund and over R2.5 trillion in assets – said it believed offers from BHP should reflect both the embedded value of existing Anglo assets and the future optionality and benefits that BHP can derive, specifically from Anglo’s unlisted assets.
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