(Updates with details on deal in paragraphs 2-5, context in paragraph 6)
Feb 19 (Reuters) - Australian diversified investor Seven Group Holdings (SVW) has made an offer to take full control of building materials maker Boral (BLD) in which it already owns a 71.6% stake.
Under the offer, Seven Group will offer a minimum of A$6.05 per share in cash and scrip to Boral shareholders, valuing the building materials maker at A$6.67 billion ($4.35 billion). The offer implies valuation of A$1.90 billion for the remainder 28.4% Boral stake which Seven Group does not already own.
Seven Group will increase its offer by another 10 Australian cents per share if either the investor achieves at least an 80% stake in Boral, or if Boral's board unanimously recommends the offer to its shareholders.
The offer would increase by another 10 cents if Seven Group's stake reaches 90.6% - the compulsory acquisition threshold.
"By acquiring the Boral shares it does not already own, SGH intends to drive an acceleration of Boral's performance journey and long-term growth," Seven Group said in a statement.
Seven Group in 2021 made multiple takeover offers to acquire Boral and amassed a 71% stake in just a few months as the building materials maker's domestic business benefited from a strengthening real estate market owing to record low interest rates at the time.
($1 = 1.5321 Australian dollars) (([email protected]; Twitter: https://twitter.com/sameer_manekar))
