Boral shares lift as Seven Group dips on failed buyout bid
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More news: Boral shares lifted after the construction material supplier's board rejected a buy-out bid by majority shareholder Seven Group Holdings, which saw its shares dip on the ASX.
Shares in Boral were trading 0.5% higher at $6.21 by 12:30pm while Seven Group shares were down 0.5% to $40.71.
Boral rejects Seven Group’s buyout bid
The news: Boral’s board has rejected a bid by majority shareholder Seven Group Holdings to buy out the remaining stake in the construction materials supplier.
The numbers: Seven, which currently holds around 72.6% controlling interest in Boral, offered to acquire all the remaining shares at a maximum of 0.1116 SGH 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. It also valued Boral’s surplus property assets between $1.4 billion and $1.6 billion, which the company said represents an uplift of $0.36 to $0.54 in value per share. Boral shares closed at $6.18 on Monday.
The context: Boral's bid response committee on Tuesday recommended shareholders reject the offer by taking no action, after the independent expert concluded it is "neither fair nor reasonable".
The Kerry Stokes-controlled Seven Group, which holds significant stakes in media, mining and construction businesses, acquired majority control in the company after multiple takeover offers in 2021.
What they said: "We encourage shareholders to remain with Boral and fully participate in the future value available through continued direct ownership of Boral,” the committee said.
The source: ASX announcement
