Business, Earthmoving News

Boral rejects Seven Group Holdings buyout bid

Boral’s bid response committee dismissed the offer as being ‘neither fair nor reasonable’

Seven Group Holding’s (SGH) recent bid for full control of Australian building materials business Boral has been rejected by Boral’s bid response committee (BRC) for being too low.

SGH currently owns a 72 per cent share of Boral and pitched a bid for the remaining 28 per cent of Boral shares with an offer of $5.96– $6.19 per Boral share (up to $6.39 per Boral share including conditional payments).

Boral says the SGH offer does not represent appropriate value for minority shareholders. An independent expert, Grant Samuel & Associates Pty Ltd, has agreed that the offer is not fair, having estimated that the fair market value of Boral shares is in the range of $6.50–$7.13 per share.

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“We have carefully evaluated the SGH offer and recommend that shareholders should reject the SGH offer as it undervalues Boral,” a Boral spokesperson says.

“The independent expert has concluded that the SGH offer is neither fair nor reasonable, supporting the BRC’s view.

“Boral management is ahead of schedule in delivering on its ‘Good to Great’ improvement strategy and is only part way through this journey. In addition, Boral has announced that it has surplus property to which Grant Samuel has attributed a value of $1.4 billion to $1.6 billion in its Independent Expert’s Report, equivalent to $1.26–$1.44 per share, which we expect to deliver significant value creation to Boral shareholders in the future.

“We encourage shareholders to remain with Boral and fully participate in the future value available through continued direct ownership of Boral.”

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