calls on their shareholders to reject a takeover bid from Seven Group Holdings (ASX:SVM)
. The company believes the $8 billion offer undervalues the company after the conglomerate offered $6.50 per share.
The building and supplies company sought independent expertise which estimated fair market value of $8.25 to $9.13 per Boral share.
“Our core focus is to deliver value to all Boral shareholders and we want all Boral shareholders to benefit from the future value we believe is available through Boral”
“We believe that any proposal to acquire control of Boral should be at a fair value.” Chairman Kathryn Fagg said.
The news followed after Kerry Stokes’ Seven Group Holdings (ASX:SVW)
launched a takeover bid early in May matching the closing price of the building supplies company on the 10 May. The offer was structured to increase its interest in Boral to around 30 per cent from its already 23.2 per cent stake in the company. Seven Group was unable to legally buy more shares in Boral until October, resulting the company to launch a full takeover.
The offer came after one month after Seven holdings exhausted its “creep” provision, where it could only increase its shareholding by 3 per cent every six months.
Share in Boral (ASX:BLD)
are trading 1.2 per cent lower at $6.80.