Australia's largest steelmaker will return hundreds of millions of dollars to shareholders after fending off a $13 billion takeover offer.
BlueScope Steel investors will receive a total of $438 million under a special dividend payout of $1 per share, after rejecting the offer from the Stokes family-controlled SGH and bid partner Steel Dynamics of the US.
The cash payout will be funded from surplus cash generated from the sale of certain assets, including its 50 per cent interest in the Tata BlueScope joint venture providing coated steel products for the Indian market.
The Illawarra steelworks operator has also offloaded 33 hectares of land in West Dapto, near the facility on the NSW south coast, for $76 million, and is releasing about $200 million of working capital from "residual" projects in its property division.
"This dividend decision is part of BlueScope’s established capital management framework and is independent of any prior or potential future proposals for the company," it said in a statement on Wednesday.
Last week, BlueScope rejected a $13.2 billion offer, which would have resulted in a breakup of the group with the Australian assets going to SGH and the US business going to Steel Dynamics.
SGH and its partner are yet to formally respond to the rejection of their offer, which amounted to $30 per share and which BlueScope said dramatically undervalued its assets.
Market analysts have suggested the would-be predators will need to increase their offer if they want to return to the table.
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.
"This special dividend demonstrates BlueScope’s ability to generate and distribute returns to its shareholders," CEO Mark Vassella said.
"With a clear line of sight to the completion of our current significant capital investment program, BlueScope is positioned to not only return to the robust cash generation it has been known for, but to strengthen it further with the enhanced earnings of the business."
The special dividend is unfranked and will be paid on February 24, after BlueScope releases its first half results on February 16.
BlueScope shares closed at $29.84 on Tuesday, just below the predators' offer price.
