Anglo American’s key South African shareholders are reportedly open to a renewed takeover bid from BHP if it includes an additional cash component.
According to the Financial Times, investors who collectively own more than 15 per cent of Anglo American said they were not opposed in principle to an acquisition by the Big Australian.
FT cited fund managers who said a more straightforward offer from BHP, possibly with a cash component or without the condition of selling Anglo’s South African assets, would be looked upon more “favourably”.
“Other local fund managers said the complexity of the deal structure … requires an even higher premium than if the whole business was being bought,” FT said.
Late last month, Anglo American rejected BHP’s all-scrip takeover proposal that valued the UK-based diversified miner at nearly $60 billion.
Anglo chair Stuart Chambers at the time said the proposed structure was “highly unattractive”.
BHP’s takeover proposal put a price tag of $59.6b on Anglo, but it wanted to effectively pay $40.5b after turning its nose up at Anglo’s South African platinum and iron ore units.
The proposal is also seen as complicated partly because of political sensitivity around the deal and the economic ramifications for South Africa, where the miner is a major employer.
The country’s mining minister, Gwede Mantashe, has previously stated he was wary of BHP’s proposal as South Africa’s previous experience with BHP was “not positive”.