The offer is set to open on March 4.
The diversified company said it would increase its offer by 10¢ cash per Boral share if it accumulated 80 per cent or more of Boral’s shares,or if the building material maker’s board recommends shareholders unanimously accept the bid. The bid would rise by a further 10¢ per share if it reached the compulsory acquisition threshold of 90.6 per cent,Seven Group said.
Seven Group said its offer was “best and final” and would not be increased.
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If both circumstances occur,Boral’s shareholders will get an aggregate value of $6.25 per share,it said. A bid at that price values the concrete maker at about $6.9 billion compared with its Monday morning market capitalisation of $5.85 billion.
Analysts at Evans and Partners said Seven’s decision to mop up Boral came as a “surprise” given the diversified group’s decision last year to sell a 1 per cent stake at $4.90 a share after it claimed the company had reached full value.
“Despite the short-term dilution to our[earnings per share] forecasts,we suspect the move reflects management’s view that the upside to Boral’s earnings is much more than the market has assumed,” the analysts said.