Boral (ASX:BLD) has entered into an agreement with Gebr Knauf KG to sell Boral’s 50 per cent interest in USG Boral for $1.43 billion.
Profit on sale before tax $540 million, subject to working capital adjustments and foreign exchange.
This transaction is expected to close in FY2021.
Boral’s 50 per cent owned USG Boral JV with Knauf, which includes the plasterboard-based businesses in Australia, New Zealand, Asia and the Middle East.
If the transaction has not closed by 30 September 2021, Knauf must pay Boral a Termination Fee of US$50 million.
Shares in Boral (ASX:BLD) last traded at $4.73.