By Mike Cherney
SYDNEY–Australian industrial services, energy and media company Seven Group offered to acquire the remaining shares in construction materials company Boral that it doesn’t already own, offering up to a nearly 7% premium on Boral’s most recent share price.
Seven Group is offering 0.1116 Seven shares and 1.50 Australian dollars (US$0.98) in cash per Boral share, valuing Boral at A$6.05 per share. The offer would increase in A$0.10 increments under certain conditions, including if the Boral board unanimously recommends shareholders accept and if Seven reaches the compulsory acquisition threshold.
Seven is offering a maximum of A$6.25 per Boral share, compared to Boral’s last closing price of A$5.85 per share.
The maximum offer values Boral’s equity at about A$6.9 billion.
Seven said that by acquiring the remaining Boral shares, it intends to drive an acceleration of Boral’s performance journey and long-term growth. The integration of Boral into Seven would increase Seven’s strategic flexibility and access to Boral’s cash flow, Seven said.
Seven, which already owns a controlling interest of almost 72%, said that its offer is final and will not be increased. Seven said it is offering more than any Boral closing price since 2007.
Write to Mike Cherney at [email protected]
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