Jefferies sees share performance for Australia's Boral to be subdued post buyout rejection

Boral

19/03/2024 21:51

** Analysts at Jefferies see stock performance for Boral
 BLD.AX  to be constrained after its rejection of a takeover bid
from Seven Group  SVW.AX  
    ** Construction materials maker on Tuesday urged
shareholders to reject SVW's $1.3 bln offer, as an independent
expert revalued co's surplus property assets to about
A$1.26-A$1.44 per BLD share, up 40-60% from previous values 
    ** "The revelation of the backstop value that property
provides in an effective nil premium bid was always expected" -
Jefferies
    ** Brokerage adds that, with BLD trading near the top range
of SVW's first and final offer, its stock performance is
expected to be constrained from here on
    ** BLD stock up 17.4% YTD, as of last close



 (Reporting by Aaditya Govind Rao in Bengaluru)
 ((Aaditya.govindrao@thomsonreuters.com;))