Boral's independent directors have agreed to Seven Group's takeover bid for control of Australia's largest concrete and cement maker, after negotiating a few concessions. Seven Group has increased its stake in Boral to 78.8% and the independent directors have recognized the seriousness of Seven's threat to make significant changes to Boral's board and operations.
Boral ’s independent directors have caved in to Seven Group ’s hardball takeover bid for control of Australia’s largest concrete and cement maker, but not before wringing a handful of concessions from the billionaire Stokes family controlled company.
Boral, run by Vik Bansal, is midway through a major turnaround and is bullish about the prospects of its quarries, cement and concrete as multiple major infrastructure works get under way around the country and demand for housing remains sky-high. “The bid response committee has concerns about the impact of these changes on Boral as a standalone listed company for minority Boral shareholders in the near term,” it said.
Boral’s independent directors were quick to reject the $6.05 cash and scrip offer the following month after their independent expert, advisory firm Grant Samuel, labelled it “not fair and not reasonable.”At the time, Seven chief Ryan Stokes said, “we obviously disagree with their assessment strongly,” reiterating the offer was “best and final” and would not be increased.They include: increasing the offer’s cash component from $1.50 a share to $1.
Boral Seven Group Takeover Bid Concrete Cement Directors Concessions Stake Board Operations
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