Australia's Boral sees highest volumes in over a year after Seven Group notes offer

Boral

07/10/2022 04:17

** Shares of construction materials maker Boral Ltd  BLD.AX 
fall as much as 1% to A$2.870
    ** Volumes about 23.5 times the 30-day avg of more than 1.5
mln shares, marking their highest level since July 2021
    ** Seven Group Holdings  SVW.AX , which owns 72.6% of
Boral's shares, prices its offer of A$250 mln ($160.7 mln)
senior exchangeable notes due 2027
    ** SVW says new notes will have a fixed coupon of 4.625% per
annum and will be exchangeable into fully paid ordinary shares
of BLD
    ** Initial exchange price of A$3.77/BLD share represents a
premium of about 30% to BLD's Thursday close
    ** SVW says offer "significantly oversubscribed"
    ** "The not-so-common move may induce the shareholders to
exit as uncertainties apparently have overtaken the growth
prospect, particularly after the share price has already soared
by 10% in a week," - Hebe Chen, market analyst at IG Markets
    ** BLD stock up ~7.7% so far in the week; set to post best
week since July 22, if gains hold
    ** BLD stock down ~19.1% this year, as of last close 
($1 = 1.5555 Australian dollars)
 (Reporting by Upasana Singh and Tom Westbrook)
 ((Upasana.Singh@thomsonreuters.com))