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

Group of thoughtful business people with eyeglasses reading documents in the office.
Industrials Shares

Results and trading halts: What went down for the NRW share price on Thursday?

We take a look at the construction and mining contractor's day on the market.

Read more »

A hipster looking man with bushy beard and multiple arm tattoos sits on the floor against a sofa reading a tablet with his hand on his chin as though he is deep in thought.
Industrials Shares

Why did the Novonix share price nosedive 6% today?

We check what happened to shares in the battery material technology company on Wednesday.

Read more »

a group of five engineers wearing hard hats and some in high visibility vests raise their arms in happy celebration atop a building site with construction and equipment in the background.
Earnings Results

Fletcher Building share price lifts on 40% profit boost

The construction company delivered solid FY22 numbers to the market today.

Read more »

A woman sits with her hands covering her eyes while lifting her spectacles sitting at a computer on a desk in an office setting.
Earnings Results

Downer share price drops on 17% profit slide

Downer expects 10% to 20% growth in underlying NPATA in FY23 after a challenging year in FY22.

Read more »

A handsome smiling man sits in the front seat of an electric vehicle with his hands on the wheel feeling pleased that the Carsales share price is going up and the company will shortly pay its biggest dividend ever
Earnings Results

SG Fleet share price rises on FY22 earnings increase

The vehicle fleet management company has also announced a FY22 dividend increase.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Earnings Results

James Hardie share price slides following guidance downgrade

The building materials maker reported decent growth in the June quarter, but is more pessimistic about the full year than…

Read more »

A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin, waiting in anticipation.
Broker Notes

Why one broker is bullish on this ‘unloved and undervalued’ ASX 200 share

The company has not had a good time of it this year.

Read more »

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
Industrials Shares

Guess which ASX 300 share Fortescue’s Twiggy just loaded up on

Find out here.

Read more »