This article is from the Australian Property Journal archive
THE wealthy Stokes family, through its Seven Group, has thrust forward a nearly $2 billion offer to acquire the remaining shares it does not currently own of construction materials company Boral.
Seven Group, spearheaded by media mogul Kerry Stokes with his son Ryan at the helm as CEO, began a takeover of Boral in 2020 and has now accumulated a 71.6% stake. Ryan is now Boral chairman.
Seven Group is offering a minimum consideration of 0.1116 of Seven Group shares and $1.50 cash per Boral share, for a total value of $6.05. That is about 3.5% above Boral’s previous trading price.
However, the takeover price lifts to $6.15 per share if one or both occurs of Seven Group reaching an aggregate interest of 80% or more; or the Boral board unanimously recommending the offer to shareholders.
It would increase by another $0.10 per Boral share if the bid reaches the 90.6% compulsory acquisition threshold, for a total of $6.25 per share, although Seven Group would no pay more than $6.25 for Boral shares for at least 12 months.
“The integration of Boral as a 100%-owned business is a natural evolution for Seven Group Holdings,” Ryan Stokes said yesterday. Seven Group considers the offer as best and final.
Boral yesterday recommended shareholders take no action.
“A board committee of Boral’s independent directors has been established in order for Boral to respond to the offer,” it said in a statement.
Boral has made positive gains under the stewardship of CEO Vik Banksal, who was appointed by the Stokes family late in 2022. Boral recently lifted its full-year profit guidance by 6% to between $300 million and $350 million.
As well as its media empire, Seven Group also owns Coates Hire, Caterpillar dealer WesTrac, and 30% of oil and gas group Beach Energy.
