The Kerry Stokes-controlled Seven Group Holdings is on the way to winning control of Boral after getting enough acceptances to boost its offer price yesterday.
Seven picked up enough shares with the promise of a price higher than the lowball $6.50 a share. That saw its stake in Boral reach 29.5%, as specified by Seven last week and was enough to boost the price to $7.30 a share.
Seven Group also said last week that if it gets enough acceptances by close of business next Wednesday to boost its holding to 34.5%, the price will rise to $7.40 a share.
Because of the increase in the offer price to $7.30, Seven’s offer has been extended and is now scheduled to close at 7pm on Thursday July 15.
Boral last week rejected Seven’s promise of a higher price if acceptances reached those levels. Boral told shareholders the revised offer still undervalued their shares.
Seven yesterday said it will not increase the offer price above $7.40 cash a Boral share under any circumstances.
Seven also said it will not acquire an interest in any Boral shares above the final offer price at any time over the next 12 months, strongly suggesting that Boral shareholders who hold out for a higher offer over the next year will be disappointed.
It is a way of ‘herding cats’ aimed at getting Boral shareholders to focus on money in the hand now rather than in the future.
The $7.40 a share offer values Boral at $9.1 billion, easily topping the $8 billion valuation of Seven’s first low ball offer.
Boral shares ended the day on $7.36. Game is almost over.
