Boral reaffirms rejection of Seven Group’s buyout bid
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The news: Boral’s board has maintained its view that shareholders reject Seven Group Holdings’ buyout bid despite the majority shareholder criticising an independent expert’s valuation report.
The numbers: Seven, which currently holds around 74.6% controlling interest in Boral, had offered to acquire all the remaining shares at a maximum of 0.1116 Seven shares and $1.70 cash, valuing the company at $6.19 a share.
Independent expert Grant Samuel estimated the fair market value higher, in the range of $6.50 to $7.13 per share and also valued Boral’s surplus property assets between $1.4 billion and $1.6 billion, which could add $0.36 to $0.54 in value per share. Boral shares closed at $5.92 on Wednesday.
The context: Boral said on Thursday Grant Samuel has responded to Seven Group’s criticism of its report late last month by stating that it had considered each of the points raised by the bidder and maintained its valuation range except for a minor change relating to capital expenditure for the Deer park quarry, which would reduce valuation by 8 cents a share.
Boral's bid response committee said the independent expert continues to hold the view that Seven’s offer to acquire the remaining shares is neither fair nor reasonable, and in view of this it maintains its recommendation that shareholders reject the offer by taking no action.
The Kerry Stokes-controlled Seven Group, which holds significant stakes in media, mining and construction businesses, acquired majority stake in the company after multiple takeover offers in 2021.
The source: ASX announcement
