Australia's Boral: Analysts see capital returns from sale of U.S. business
22/06/2021 01:27
** Analysts say Boral's BLD.AX sale of its North American
building products business will generate significant surplus
capital, paving the way for capital returns to shareholders
** Shares of Boral rise as much as 2.6%, extends gains to a
third session
** The building materials supplier said on Monday it would
sell its North American building products business to a unit of
NYSE-listed Westlake Chemical Corp WLK.N for $2.15
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** Morgan Stanley says proceeds from sale will increase co's
surplus and likely result in further capital management, while
Citi says the surplus could lead to capital returns
** Citi notes that in the United States, the fly ash
business remains, with the company currently working through
alternative supply sources, with potential for a JV, strategic
alliance or divestment
** Citi says the next catalyst for Boral will be the FY21
result in August 2021 or earlier, should a decision be made on
fly ash
(Reporting by Arundhati Dutta in Bengaluru)
((Arundhati.Dutta@thomsonreuters.com;))