Kerry Stokes’ Seven Group to Buy Boral for $1.2B

Seven Group Holdings, led by billionaire Kerry Stokes, has announced its intention to acquire the remaining shares of Boral, a prominent concrete and asphalt manufacturer, for $1.2 billion. This strategic move reflects Seven Group’s keen interest in capitalizing on Australia’s robust infrastructure sector, leveraging Boral’s expertise and market presence to further enhance its industrial portfolio. The acquisition, facilitated by SGH Bidder, a subsidiary of Seven Group, values each Boral share at $6.05, comprising 0.1116 Seven Group shares and $1.50 in cash. Seven Group already commands a 72% stake in Boral, following a previous takeover attempt in 2021, and seeks to consolidate its position in the market through this transaction.

Ryan Stokes, CEO of Seven Group and son of Kerry Stokes, has expressed confidence in the benefits that this acquisition would bring to both Seven Group and Boral shareholders. He emphasized the ongoing operational improvements at Boral, indicating that full integration with Seven Group would further accelerate the company’s performance and growth trajectory. The proposed offer includes a cash component that could increase to $1.70 per share, bringing the total compensation to $6.25 per share if a sufficient number of shareholders accept the deal, meeting the 90.6% compulsory takeover threshold.

In response to Seven Group’s offer, Boral has established an independent committee to evaluate the proposal. The committee has advised shareholders to take no action pending further information from the board. Ryan Stokes reiterated that acquiring full ownership of Boral aligns with Seven Group’s strategic objectives, positioning the conglomerate as a key player in the Australian industrial landscape. He expects the integration to not only support but also accelerate Boral’s current performance improvement initiatives, driving the company from good to great.

Kerry Stokes, with a net worth of $5.7 billion, is ranked 12th on Forbes’ list of Australia’s 50 Richest. His career began in the sale of Caterpillar equipment in Australia and China, before expanding into media with the acquisition of Seven Group in 1996. Stokes has since transformed the company into one of Australia’s largest conglomerates, valued at $14.8 billion, with diverse interests spanning construction, energy, industrial services, and mining. The acquisition of Boral represents a significant milestone in Seven Group’s growth strategy under Kerry Stokes’ leadership, further solidifying its position as a leading industrial player in Australia.