Seven Group’s takeover bid for Boral closes tomorrow night. It currently has 61.87% of the construction supplies company’s voting rights.
Right now, the Boral share price is $7.40, the same as it was at yesterday’s close. The $7.40 amount is also the price that Seven Group is paying for pieces of Boral.
Meanwhile, the Seven Group share price is down slightly. It’s currently $23.70, 0.17% lower.
But what does Seven Group want with Boral? Here’s a rundown of the rumours we’ve heard so far.
What Boral’s future might be
The Boral share price is flat amid reports it could be about to see a change to its upper management team.
According to The Australian, Seven Group CEO Ryan Stokes is planning to take over as chair of Boral’s board after the company officially wins control at 7pm on Thursday.
Additionally, the publication stated Richard Richards would be reinstated to Boral’s board. The Australian also speculated that a third Seven representative could be added to the board.
Seven Group has declared it will retain a majority of independent directors on the Boral board.
Another publication claimed Seven Group didn’t actually want majority ownership of Boral. According to the Sydney Morning Herald, Boral was aiming for a maximum 40% hold in Boral.
That may check out, as Seven Group initially declared it would be happy to walk away from the takeover bid with a 30% holding in Boral.
The Sydney Morning Herald also claimed Boral’s CEO Zlatko Todorcevski could have had a target on their back.
However, days after the publication suggested Todorcevski’s future could be uncertain, both Todorcevski and Boral’s chief financial officer, Tino La Spina, were guaranteed job security. Removing them from their positions would be a costly exercise for Boral.
Boral share price snapshot
The Boral share price has had a good run this year.
It is currently 49% higher than at the start of 2021. It has also gained 89% over the last 12 months.