Boral committee recommends Seven bid

BORAL’S Bid Response Committee has revised its recommendation and unanimously agreed that its shareholders accept Seven Group’s proposed takeover bid.

Bid Response Committee recommended Boral shareholders should accept Seven Group Holding’s (SGH) off-market takeover offer or sell their shares on-market.

The maximum consideration of 0.1116 SGH shares and $1.70 cash be paid to all Boral shareholders who accept the offer.

SGH plans to declare a $0.30 per share fully-franked dividend that will be paid to all existing and new SGH shareholders following completion of the offer.

The independent expert has also formed the view that the offer is reasonable, with SGH now holding an aggregate interest of 78.79% in Boral.

“We welcome the change in recommendation from the Bid Response Committee and we are pleased to be able to offer Boral shareholders the Maximum Consideration under our Offer,” said Ryan Stokes, managing director and CEO at SGH.

“Both new and existing SGH shareholders also stand to benefit from the 30 cent per share fully-franked dividend that SGH will pay following completion of SGH’s Offer. The initiatives announced today improve momentum supporting our achievement of this outcome.”

In March, Seven slammed an independent report that was critical in building materials giant Boral’s rejection of its $1.9 billion buyout bid.

With Seven releasing a statement at the time saying it was “extremely disappointed that there were fundamental errors in the independent expert report in Boral’s target’s statement dated 19 March 2024, which directly affected the valuation range and the independent expert’s conclusion”.

“As a consequence, the target’s statement is unbalanced, selective and risks fundamentally misleading Boral minority shareholders.”

Seven Group began its takeover of Boral in 2020 and had until now accumulated a 73% stake.