Seven Group Holdings proposal for Boral acquisition

Seven Group Holdings Limited (ASX: $SVW) has announced its proposal to acquire the remaining shares it does not currently own in Boral Limited. The offer includes a minimum consideration of 0.1116 SGH shares and $1.50 cash per Boral Share, with potential increases based on SGH reaching certain thresholds and board recommendations. The offer has been authorized by the Board of Seven Group Holdings Limited.

Executive Commentary on the Acquisition Proposal

The proposal to acquire the remaining shares in Boral represents the next logical step in our acquisition journey, building on the significant value we have already created within Boral since acquiring control. This move will allow us to add even greater value at higher levels of ownership and ensure Boral is well-prepared as global competitor CRH enters the Australian market. The de-listed structure will improve the efficiency of our holding of Boral, providing us with greater influence and the ability to optimize cashflows. We have a demonstrated track record of creating value within our portfolio, as evidenced by Coates' EBIT more than doubling under our 100% control. This offer is a highly disciplined approach to capital allocation, and we are confident in the outlook for our businesses, with industrial services guidance upgraded at HY24 results to 20 - 25% EBIT growth in FY24.

Summary of Seven Group Holdings' Proposal and Outlook

Seven Group Holdings Limited (ASX: $SVW) has put forward a proposal to acquire the remaining shares it does not currently own in Boral Limited, with a structured offer including both cash and share consideration. The offer is designed to increase SGH's influence and optimize cashflows, while also improving the appeal of SGH shares for investors. The transaction reflects SGH's confidence in the outlook for its businesses, with industrial services guidance upgraded at HY24 results to 20 - 25% EBIT growth in FY24. The acquisition is seen as a natural fit for SGH, aligning with its core demand thematics and providing a relative value opportunity. Upon completion of the offer, SGH intends to continue supporting Boral's key management and Board approved strategy, without intending to implement major changes to the business or redeploy any fixed assets. The proposal also includes plans for delisting Boral when legally permissible and appointing additional nominees on the Boral Board proportionate to shareholding, demonstrating SGH's commitment to the long-term growth and success of Boral.