April 25, 2024 06:56 GMT
BHP (A1/A-): Anglo Offer Confirmed
BASIC INDUSTRIES
• All share offer (0.7097 BHP shares) with proportional shares in Amplats and Kumba.
• Equates to around £25 per Anglo share, a 13% premium to the closing price.
• Values Anglo equity at £31.1bn. The premium looks modest on the face of it and we would expect Anglo to push for better terms .
• Clearly credit positive for AALLN (Baa2/BBB) and negative for BHP if the deal goes through, with the curves 30-40bp apart.
• We would not expect anything like full convergence for now given the modest premium.
Keep reading...Show less
87 words