News: BLD Boral Says Demand Substantially Declining Due To Impacts Of Covid-19

April 14 (Reuters) - Boral Ltd (BLD) :

• DEMAND IS SUBSTANTIALLY DECLINING DUE TO IMPACTS OF COVID-19
• BORAL NOW EXPECTS $330M OF CAPITAL EXPENDITURE IN FY2020
• IN NORTH AMERICA AND ASIA, STRINGENT MANDATES AND RESTRICTIONS HAVE RESULTED IN TEMPORARY CLOSURES OF SEVERAL OPERATIONS
• CO, KNAUF BELIEVE GETTING REGULATORY APPROVALS TO ALLOW DEAL TO BE IMPLEMENTED AS SIGNED IN AUGUST 2019 NOT ACHIEVABLE BY 30 JUNE
• IN MOST JURISDICTIONS, CO'S OPERATIONS CONSIDERED TO BE WITHIN CRITICAL INFRASTRUCTURE AND CONSTRUCTION SECTORS
• BORAL AND KNAUF TO CONSIDER RANGE OF POTENTIAL OPTIONS, WITH BORAL'S OBJECTIVE BEING TO TARGET A CASH NEUTRAL TRANSACTION
• PRE-EXISTING US$400M ACQUISITION BRIDGE FACILITY, FOR PURPOSE OF COMPLETING DEALWITH KNAUF, ALLOWED TO LAPSE
• DEMAND IS DECLINING IN MOST MARKETS AND IS EXPECTED TO CONTINUE TO DECLINE, PARTICULARLY IN RESIDENTIAL CONSTRUCTION MARKETS
• AS AT END OF MARCH 2020, CO HAS ABOUT A$890MLN OF AVAILABLE CASH AND UNDRAWN COMMITTED FUNDS