Table of Contents
Billionaire Kerry Stokes, the chairman of Seven Group Holdings Ltd., addresses participants at the B20 Australia Summit.
Seven Group Holdings, overseen by mining and media tycoon Kerry Stokes and his family, is proposing to acquire the remaining stake in Boral, a concrete and asphalt manufacturer, for A$1.9 billion ($1.2 billion) through a cash and share transaction. This move comes as the Australian conglomerate aims to tap into the country’s burgeoning infrastructure spending.
Join our Telegram Channel for Updates
As outlined in the proposal, SGH Bidder, a subsidiary of Seven Group, presents A$6.05 for each Boral share, comprising 0.1116 Seven Group shares and A$1.50 in cash, according to a statement issued by Seven Group to the Country Australian Stock Exchange. Following a takeover attempt in 2021, Seven Group already holds a 72% stake in Boral.
Ryan Stokes, CEO of Seven Group and son of the former chairman Kerry Stokes, stated in the release, “This transaction provides a compelling rationale for Seven Group and for Boral’s shareholders, who would transition to become Seven Group shareholders as part of the transaction and continue to reap the benefits of the ongoing operational improvements at Boral.”
The cash component could potentially be raised to A$1.70, resulting in a total compensation of A$6.25 per share if acceptances reach the compulsory takeover threshold of 90.6%, according to Seven Group.
Boral, in a separate statement, announced the establishment of an independent committee to evaluate the offer and advised shareholders to refrain from taking action until the board provides additional information.
The integration of Boral as a wholly-owned business aligns with the natural evolution of Seven Group, reinforcing our position as a leading ASX industrial business, added Ryan Stokes, who also serves as the chairman of Boral.
The integration is expected to support and accelerate the delivery of the current Good to Great performance journey.”
