Despite having a bad day on the ASX today – it’s currently down 1.01% – the Boral share price has gained 37.8% since the start of 2021.
Let’s look at what the company has been up to for the first half of the year.
2021 so far for Boral
Boral’s half-year results
The first time we heard from Boral this year was in February, when the company released its results for the first half of the 2021 financial year.
On the day of its results being shared, the Boral share price ended the day 1.9% lower than its previous close.
The six months ended 30 December 2020 saw Boral Australia’s revenue fall by 8%. In the same time period, Boral North America experienced a 9% revenue decline. Further weighing on its share price that day was the company’s decision to not offer its investors a dividend.
Joint venture sale and on-market buy-back
On 1 April, Boral announced it was to sell its share in the USG Boral joint venture and commence an on-market share buy-back.
The sale expected to see Boral walking away with around $300 million less debt and $1 billion to reinvest in the business and to return to its shareholders.
The on-market buy-back would see Boral purchasing up to 10% of its outstanding shares over a 12-month period. The share buy-back began on 20 April.
The news boosted the Boral share price to close 6.7% higher that day.
Also in April was Boral’s announcement of potential changes to the management of its North American fly ash business. These changes could involve Boral entering into a joint venture, a strategic alliance, divesting the business to a third party, or continuing its ownership unchanged. News of the potential business changes boosted the company’s shares to close 0.5% higher.
Finally, on 10 May, Seven Group Holdings Ltd (ASX: SVW) proposed to acquire all of Boral’s shares for $6.50 apiece.
The proposed price was a nil-premium on the Boral share price’s previous close. It valued Boral at around $8 million.
At the time, The Motley Fool Australia reported the offer was likely an attempt to evade ‘creep rules’. In this instance, creep rules meant the group couldn’t increase its holdings in Boral without making a takeover offer.
Seven Group claimed it would have been happy to increase its holdings in Boral from 23.2% to 30%.
Boral recommended its shareholders reject the bid the day after Seven Group offered it.
Over the 2 days the bid was in motion, the Boral share price gained 4.6%.
Boral share price snapshot
It goes without saying that, so far, 2021 has been a good year for the Boral share price.
Additionally, the last 12 months have seen it gain an impressive 79%.
However, while Boral’s performance this year has been great, it’s a long way off being the top ASX 200 performer in 2021.
Currently, Virgin Money UK CDI (ASX: VUK) is leading the ASX 200, having gained 62% since the start of 2021. In second place by a slither is Codan Limited (ASX: CDA), which has gained 61% in the same time frame.