Australian conglomerate Seven Group Holdings has put forth a significant bid of $1.24 billion to acquire complete ownership of Boral, a prominent building products group, signaling a confident bet on the sustained growth of Australia’s infrastructure sector.
Led by billionaire Kerry Stokes and his family, Seven Group already holds nearly 72 percent ownership of Boral. The offer, revealed on Monday, aims to secure the remaining shares of the company. The proposed bid, valued at a minimum of approximately $4 per Boral share, comprises 0.1116 Seven Group shares and $0.98 in cash. If successful, the deal would value Boral at $4.35 billion, representing a 3.4 percent premium over its recent closing price. Seven Group’s proposal exceeds any closing price Boral has seen since 2007, highlighting the seriousness of the bid.
Boral has strategically restructured its operations over the past two years, concentrating on strengthening its Australian building and industrial products segment to capitalize on the government’s increased infrastructure spending initiatives. The company has divested several international assets, refocusing its attention on domestic opportunities. This strategic shift aligns with the broader trend of governments boosting infrastructure investments. Boral’s proactive measures have positioned it to benefit from this trend, rendering it an appealing acquisition target.
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