Seven seeks $3bn Boral takeover support

Seven Group has moved to garner takeover support from Boral shareholders for it $3.1bn takeover of the building group by improving the payment terms and removing all conditions.

If Boral shareholders accept the offer, they will be issued with Seven Group shares and sent to payment within seven business days on the date the offer was accepted from 14 business days. Seven Group, which is majority-owned by the Stokes family, wants to buy the 28.4 per cent of Boral it does not already own as it bets on future growth in the building sector.

The ASX-listed company had previously offered 0.1116 Seven Group shares and $1.50 cash for each Boral share it does not already hold. This represented an aggregate value of $6.05 per Boral share.

If more than 80 per cent of Boral shareholders accept the offer and the Boral board recommends the deal, the cash component will rise to $1.70, taking the offer to $6.25 per share.

Seven Group has established an acceptance facility in relation to the off-market takeover bid for all of the ordinary shares in Boral. The facility is open to all Boral shareholders to facilitate the receipt of their acceptances of the offer.

It enables shareholders to indicate their intention to accept the offer without being obliged to do so until the first consideration increase is effective. Boral shares fell 0.3 per cent to $6.03 in morning trade.

Boral has again told shareholders to ‘take no action’.

Boral is seeking to rebuild its business under the leadership of Vik Bansal, after its massive restructuring under predecessor Zlatko Todorcevski.