Boral Shares Surge Amid Takeover Offer

Highlights:

• Boral Ltd shares surge 3.5% amid takeover offer from Seven Group Holdings Ltd (ASX: SVW).
• Offer of AU$6.05 per share provides a modest 3.5% premium, with potential to increase to AU$6.25 per share.
• Seven Group Holdings CEO highlights strategic rationale, emphasizing operational improvements and benefits for shareholders.

Investors Rally as Seven Group Holdings Makes Bid for Full Control

Boral Ltd (ASX: BLD) shares are making waves on the ASX today, climbing 3.5% to AU$6.05 in morning trade, outperforming the broader ASX 200 index which saw a modest 0.1% increase.

Takeover Offer from Seven Group Holdings

The surge in Boral shares follows news of a takeover offer from Seven Group Holdings Ltd (ASX: SVW), the company's largest shareholder with a stake of over 70%. Seven Group Holdings has tabled an offer of AU$6.05 per share to acquire full control of Boral. This offer comprises 0.1116 Seven Group shares and AU$1.50 cash per Boral share, representing a modest 3.5% premium to Boral's recent trading price.

Potential for Increased Offer

However, the offer may see an increase to a maximum of AU$6.25 per share if it reaches the 90.6% compulsory acquisition threshold, providing shareholders with a more substantial 6.8% premium.

Strategic Rationale

Ryan Stokes, CEO of Seven Group Holdings, expressed excitement about the opportunity, highlighting the strategic fit between Boral and Seven Group Holdings' Industrial Services portfolio. Stokes emphasized the benefits for both companies' shareholders, underlining the ongoing operational improvements at Boral.

Boral Advises Caution

Boral advises its shareholders to refrain from action regarding the offer until further information is provided. A board committee of independent directors has been established to evaluate the offer's terms.

As the situation unfolds, investors are closely monitoring developments, anticipating the potential implications of the takeover bid on Boral's future trajectory and shareholder value.

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