JOHANNESBURG - South African state-owned asset manager the Public Investment Corporation (PIC) said on Wednesday that it would require a "meaningful revision" of BHP Group's bid for rival miner Anglo American.
Anglo rebuffed BHP's initial $39-billion all-share proposal made on April 25, dismissing it as opportunistic.
It subsequently rejected a revised offer of $43-billion saying the world's largest listed miner "continues to significantly undervalue" the company and that its difficult to execute.
The PIC, a major shareholder in Anglo, said in a statement: "The PIC believes 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."
"This would require a meaningful revision of the current BHP proposal that should take into consideration the material risks that current shareholders of both Anglo and its subsidiaries would have to assume," the PIC said.
BHP has until May 22 to make a binding offer.
Anglo has rebuffed two all-share proposals from BHP as inadequate and too difficult to execute and last week unveiled plans for a break-up to focus on the energy transition and copper, while spinning out or selling its coal, nickel, diamond and platinum businesses.
Anglo shareholder Legal & General Investment Management (LGIM) said on Monday it supported the break-up plan and did not see a clear reason for the board to change stance on BHP's offer, unless there was a reasonable premium to the underlying fair value of Anglo's assets.