Australia’s largest steelmaker BlueScope Steel is under new leadership as investors wait for the next shoe to drop in its ongoing takeover saga.
Tania Archibald commenced her role as managing director and chief executive on Monday replacing Mark Vassella, who has retired after eight years leading the Melbourne-based group, which owns the Port Kembla steelworks in NSW and key US assets.
Ms Archibald, who was appointed on November 5, has had a 30-year career at BlueScope, including as chief financial officer and most recently as CEO of its Australian steel business.
In a video posted on social media, the company’s first woman CEO pledged to take BlueScope into a new era “with a relentless focus on our customers, our shareholders, our people and our communities.”
Ms Archibald wants to simplify how BlueScope operates, cut costs, realise the value of BlueScope’s 1200-hectare surplus land portfolio and increase shareholder returns.
It’s already on track to pay a special dividend of $1 per share from February 24, after its interim results are released on February 16.
“Shareholders have been patient,” she said.
“That patience is now being rewarded.”
BlueScope’s board on January 7 unanimously rejected what it called a “highly opportunistic” $13.2 billion takeover proposal from the Stokes family-controlled SGH and US steelmaker Steel Dynamics.
Ms Archibald reiterated that the $30 per share offer materially undervalued the company and was an attempt to acquire BlueScope’s world-class assets in the US, Australia and New Zealand at a price that didn’t reflect their true worth.
“The board is open to engaging with any proposal that genuinely reflects BlueScope’s fundamental value,” she said.
“But we’re not sitting here waiting.
“We’re getting on the front foot to accelerate the delivery of BlueScope’s value.”
Steel Dynamics co-founder, chairman and CEO Mark Millett said during an earnings call on January 26 that the group’s pursuit of the assets was strategic, not opportunistic.
“We pay fair value for good businesses that enhance value for all constituents,” he said, arguing the consortium had made a compelling offer that valued BlueScope above what its share price had realised over 15 years.
Steel Dynamics was, he argued, the logical owner of BlueScope’s coveted North Star operation, known as a “mini-mill” because it uses scrap steel to produce hot-rolled coil at a lower cost base than integrated mills.
Mr Millett didn’t say what the company’s next move would be.
In morning trading on Monday, BlueScope Steel shares were down 0.9 per cent to $29.98 and just under the consortium’s most recent offer.
The SGH-Steel Dynamics offer was made on December 12, but only came to light on January 5 when it was also revealed Steel Dynamics had made three unsuccessful previous approaches to take control of BlueScope.