Australia's Boral urges shareholders to reject Seven Group's $1.3 bln offer (updated)

Boral

18/03/2024 22:14

(Adds context and deal details in paragraphs 2-5)
       March 19 (Reuters) - Australia's Boral  BLD.AX  on
Tuesday urged shareholders to reject diversified investor Seven
Group Holdings'  SVW.AX  A$1.9 billion ($1.25 billion) offer for
the remaining stake in the building products group maker, citing
valuation concerns. 
    Seven Group, controlled by billionaire Kerry Stokes and his
family, already owns nearly 72% of Boral and had launched a bid
last month to acquire full control of Boral. 
    The proposal of a minimum of A$6.05 per Boral share consists
of 0.1116 Seven Group shares and A$1.50 cash.
    The deal would value Boral at A$6.67 billion ($4.35 billion)
and represent a 3.4% premium to Boral's last closing level of
A$5.850 on Feb. 16.  
    An independent expert, Grant Samuel & Associates Pty, has
assessed fair value for Boral in the range of A$6.50-A$7.13 per
share, the company said. 
    Grant Samuel concluded Seven Group's offer as "not fair and
not reasonable", after which all Boral directors other than
Seven Group nominees intend to reject the offer, the company
said in a statement. 
    
    

($1 = 1.5253 Australian dollars)

 (Reporting by Roushni Nair in Bengaluru; Editing by Ravi
Prakash Kumar)
 ((Roushni.Nair@thomsonreuters.com;))