Australia's Seven Group offers to take full control of Boral (updated)

Boral

18/02/2024 21:47

(Updates with details on deal in paragraphs 2-5, context in
paragraph 6)
       Feb 19 (Reuters) - Australian diversified investor Seven
Group Holdings  SVW.AX  has made an offer to take full control
of building materials maker Boral  BLD.AX  in which it already
owns a 71.6% stake. 
    Under the offer, Seven Group will offer a minimum of A$6.05
per share in cash and scrip to Boral shareholders, valuing the
building materials maker at A$6.67 billion ($4.35 billion). The
offer implies valuation of A$1.90 billion for the remainder
28.4% Boral stake which Seven Group does not already own. 
    Seven Group will increase its offer by another 10 Australian
cents per share if either the investor achieves at least an 80%
stake in Boral, or if Boral's board unanimously recommends the
offer to its shareholders. 
    The offer would increase by another 10 cents if Seven
Group's stake reaches 90.6% - the compulsory acquisition
threshold. 
    "By acquiring the Boral shares it does not already own, SGH
intends to drive an acceleration of Boral's performance journey
and long-term growth," Seven Group said in a statement. 
    Seven Group in 2021 made multiple takeover offers to acquire
Boral and amassed a 71% stake in just a few months as the
building materials maker's domestic business benefited from a
strengthening real estate market owing to record low interest
rates at the time. 

($1 = 1.5321 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru; Editing by Lisa
Shumaker)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))