Boral shares up as Seven Group looks to buy remaining shares
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The news: Diversified investor Seven Group Holdings has proposed to buy the remaining shares in listed construction materials company Boral for a total value of $1.9 billion.
The numbers: Seven, which currently holds a 71.6% controlling interest in Boral, has offered to acquire all the shares it does not already own in Boral. It has proposed a minimum of 0.1116 Seven shares and $1.50 cash per Boral share, representing an aggregate value of $6.05 per Boral share.
The offer values the 28% stake in Boral at $1.9 billion, and the company as a whole at $6.67 billion.
Seven said it would also raise the offer by another 10 cents if it achieves an aggregate 80% stake in Boral or if Boral's board unanimously recommends the offer to its shareholders, or both.
Seven stock dipped at market open on Monday, with share prices 1.8% lower at 10:30am AEDT. Boral shares rose 2% to $5.97.
The context: Ryan Stokes' group, which invests in media, mining and construction industries, made multiple takeover offers for Sydney-based Boral in 2021, which were rejected on the basis that they undervalued the company.
Earlier this month, Boral share prices saw a one-day surge of over 10% after the company upgraded its earnings guidance following strong first-half results. Seven said that it "intends to drive an acceleration of Boral's performance journey and long-term growth" through its proposed acquisition.
The source: ASX announcement
