Boral's Response to SGH Offer

Boral Limited (ASX: $BLD) has released the Target's Statement in response to the offer from Seven Group Holdings (SGH). The Bid Response Committee (BRC) recommends that Boral shareholders reject the SGH Offer as it does not represent appropriate value for minority shareholders. The Independent Expert has concluded that the SGH Offer is neither fair nor reasonable, supporting the BRC's view.

Executive Commentary on SGH Offer

We have carefully evaluated the SGH Offer and recommend that shareholders should reject the SGH Offer as it undervalues Boral. The Independent Expert has concluded that the SGH Offer is neither fair nor reasonable, supporting the BRC's view. Boral management is ahead of schedule in delivering on its 'Good to Great' improvement strategy and is only part way through this journey. In addition, Boral has today announced that it has surplus property to which Grant Samuel has attributed a value of $1.4 billion to $1.6 billion in its Independent Expert's Report, equivalent to $1.26-$1.44 per share, which we expect to deliver significant value creation to Boral shareholders in the future. We encourage shareholders to remain with Boral and fully participate in the future value available through continued direct ownership of Boral.

Summary of Boral's Response and Outlook

The Bid Response Committee (BRC) of Boral Limited (ASX: $BLD) has recommended that shareholders reject the SGH Offer as it does not represent appropriate value for minority shareholders. The Independent Expert, Grant Samuel & Associates Pty Ltd, has assessed the SGH Offer and concluded it is not fair and not reasonable, estimating the fair market value of Boral Shares to be in the range of $6.50 - $7.13 per share. Boral's outlook is robust with its 'Good to Great' turnaround strategy ahead of schedule and only part way complete. The company's revised surplus property value is assessed to be $1.26 - $1.44 per share, indicating significant value creation for Boral shareholders in the future. Boral remains a strong, independently viable ASX listed company with a committed management team focused on maintaining sustainable double-digit returns and EBIT margins.