Jefferies sees sufficient cash income for Boral from divestment of USG Boral joint venture, U.S. businesses
14/03/2021 22:12
** Jefferies notes Australian Competition and Consumer
Commission (ACCC) and Foreign Investment Review Board
(FIRB)approval for Boral to receive $1.015 billion cash payment
from Knauf in a divestment agreement
** German-based Knauf Group published approval from ACCC and
FIRB on March 1 for the divestment process necessary for Knauf
to buy building material firm Boral Ltd's BLD.AX 50% stake in
their global plasterboard joint venture, USG Boral
** Knauf Australia received approval to divest its
plasterboard and metal business to Belgium-based Etex
** "This approval could be the trigger for a Boral share
buyback of ~$700 mln" - Jefferies
** Jefferies expects there is more cash to come through
Boral's divestment of North American businesses announced in
2020. The brokerage currently values the entire U.S. portfolio
at A$3.2 bln ($2.48 bln)
** Brokerage rates Boral as a "buy" and sets price target at
A$6
($1 = 1.2903 Australian dollars)
(Reporting by Vasudha Kaukuntla in Bengaluru; Editing by Peter
Cooney)
((Vasudha.Kaukuntla@thomsonreuters.com))