Building material supplier Boral
(ASX:BLD) plans to raise $490 million to strengthen its balance sheet and support future capital investments and growth.
The capital raising follows the completion of a six month review that will result in major strategic and organizational changes.
Proceeds from the capital raising will go towards acquiring the remaining 50% stake in the company’s US concrete and roof tile business MonierLifetile for US$75 million.
Boral says the capital raising will also allow it to invest around $280 million into key Australian assets which will enhance the company’s market positions in NSW and Victoria.
Boral also upgraded its earnings forecast for the year, saying it now expects profit of between $123.5 million to $132 million dollars.
However, the company says it will incur a charge of $289 million reflecting the impairment of assets identified in the review as having under performed.
Boral posted a net profit after tax of $142 million for fiscal year 2009.
