Boral (ASX:BLD) share price struggles as Seven waits to take over

The finish line is in sight for Seven Group's takeover. What might it mean for Boral?

| More on:
Builder eyes a spirit level on a piece of timber to ensure it's flat.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Boral Limited (ASX: BLD) share price has been largely flat this morning as it pushes through its last few days before Seven Group Holdings Ltd (ASX: SVW) takes control.

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.

The company has a market capitalisation of around $8.1 billion, with approximately 1.1 billion shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Industrials Shares

A couple stares at the tv in shock, one holding the remote up ready to press.
Industrials Shares

3 ASX media shares going gangbusters today

Investors are cheering on these shares on Tuesday. But why?

Read more »

Earnings Results

This $27 billion ASX 200 share is jumping on strong quarterly results

Investors are cheering on this giant's quarterly update this morning.

Read more »

Woman sits at her desk working at night, while traffic flows on a busy freeway out the window behind her.
Industrials Shares

'Very saleable': The beaten-up ASX 200 stock that could be a takeover target

Is this stock driving towards a takeover?

Read more »

Woman on the phone at a hardware store.
Industrials Shares

Why this $18 billion ASX 200 stock is lifting off on Wednesday

The ASX 200 company is racing ahead of the benchmark.

Read more »

piggy bank at end of winding road
Dividend Investing

Which ASX 200 industrials share will pay the best dividend yield in 2025?

Can investors rely on ASX industrials stocks to pay good dividend yields this year?

Read more »

A businessman waers armour and holds a shield and sword.
Industrials Shares

Is this ASX industrial stock a buy for defensive cash flows?

If you crave defensive growth, let's see what the experts think.

Read more »

Distressed man at a casino puts his head in his hands, covering his face.
Record Lows

Star shares crash 25% to record low on shocking cash crunch

The market appears concerned that the casino operator could be about to go bust in the game of business.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Industrials Shares

Up 130% in a year, why this ASX defence stock is soaring again today

It takes just five weeks for this company to do something that used to take 17 months.

Read more »