Boral's Response to Seven Group Holdings' Takeover Offer

Boral Limited (ASX: $BLD) has issued a Target's Statement in response to an off-market takeover offer made by Network Investment Holdings Pty Limited, a wholly-owned subsidiary of Seven Group Holdings Limited. The offer proposes a minimum total consideration of 0.1116 Seven Group shares and $1.50 cash for each Boral share, with potential increases based on certain conditions. The Boral Bid Response Committee unanimously recommends rejecting the offer, providing shareholders with essential information to make an informed decision.

Executive Commentary on the Takeover Offer

The Boral Bid Response Committee has unanimously recommended rejecting the takeover offer from Seven Group Holdings, citing the assessment by the Independent Expert that the offer is not fair and reasonable. The committee acknowledges that shareholders may have different risk tolerances and provides information on the tax implications of accepting the offer. Boral shareholders have the choice to reject the offer, sell their shares on the market, or accept the SGH Offer.

Outlook and Strategic Position

Boral Limited, a leading integrated construction materials supplier in Australia, has emphasized its strategic priorities, including a focus on optimizing individual asset classes and building on the synergies of its significant integrated business. The company's recent financial performance reflects the delivery of its strategic journey, with expectations to deliver underlying EBIT in the range of $330-350 million for the full year FY24. Boral's net debt as of 31 December 2023 was $84.5 million, supported by $888.7 million cash on the balance sheet. The company's board of directors includes experienced management with a clear plan to deliver earnings growth and long-term value to shareholders under a renewed strategy. The announcement provides shareholders with comprehensive information to make an informed decision regarding the takeover offer.