Kerry Stokes' Seven Group (ASX:SVW) is bidding to acquire the 28.4% minority stake in Boral (ASX:BLD) with an offer that, despite its $6.05 per share price, holds a mere 20 cents premium to Friday's closing sale of $5.85.
With Seven Group already owning 71.6% of Boral, the cash and share bid, which the company deems to have a "compelling rationale," values Boral at $1.9 billion.
However, this offer falls short of Seven Group's previous bid of $6.50 in 2021, which was increased to $7.40 to gain control after a prolonged acquisition process involving on-market purchases and subsequent price rises.
In an attempt to secure acceptance of the offer, Seven Group has structured it to increase by 10 cents per share under certain conditions, such as reaching an 80% stake or receiving a unanimous recommendation from Boral's board.
Despite Boral's higher performance contributing to Seven Group's recent profit rise, the latter is determined to gain full ownership to drive further growth.
While Seven Group emphasizes the strategic benefits of integration with Boral, the latter has advised its shareholders to take no immediate action, forming an independent board committee to assess the offer's merits.
