Ryan Stokes wants to add the cement maker to his trophy cabinet. Will he and father Kerry get what they want, again? History says they’re hard to beat.
Already a subscriber?The overwhelming feeling among Boral’s bigger institutional shareholders is that Stokes’ offer is cheap, opportunistic and another potentially great deal for Stokes and his Seven Group – he has a trophy cabinet full of them.It is also deliberately aggressive. His bid, dubbed Project Rafter, wedges his fellow Boral investors between his offer of Seven Group shares, and withering inside a privatised and illiquid Boral.
Sindel has made no public comments since the bid landed on February 19. But he has had his bankers at UBS surveying Boral’s bigger minority investors, and they have told him to take Stokes on. Once it gets control, Seven says there will be no dividends at Boral for the forseeable future. Excess cash will be used to support Boral’s long-term growth.And Seven will seek to de-list Boral “when legally permissible and consistent with ASX guidance”.
When would it be legally permissible to de-list? If Seven got to a 90 per cent stake, with few questions asked, or if it had a 75 per cent stake and there were fewer than 150 shareholders. Boral had 51,639 shareholders as at July 7 last year, so that looks unlikely.
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