The Boral Limited (ASX: BLD) share price is falling following the end of Seven Group Holdings Ltd's (ASX: SVW) grab for the company and the beginning of a leadership shakeup.
Seven Group's takeover bid finished at 7pm last night with Seven Group left holding 69.6% of Boral's voting power. This morning, Boral announced several changes to its board.
Right now, the Boral share price is $7.29. That's 0.68% lower than its previous close and 8 cents less than Seven Group was paying for Boral shares only yesterday.
At the same time, the Seven Group share price is up 0.13% with its shares trading for $23.34 apiece.
Let's take a closer look at the finale of Seven Group's takeover of Boral.
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Seven Group wins takeover battle
The Boral share price is falling after changes rumoured to be facing Boral's board following Seven Group's takeover turned out to be true.
As was previously assumed, Seven Group's CEO and managing director Ryan Stokes has taken over as chair of Boral's board as of this morning.
Additionally, Seven Group's chief financial officer Richard Richards has, indeed, been appointed to Boral's board.
Now-former chair Kathryn Fagg has stepped down effective immediately.
Using his new title publicly for the first time, Stokes commented on Fagg's time with Boral. He said:
On behalf of my fellow directors and shareholders I would like to thank Kathryn for her contribution to Boral… Kathryn leaves Boral in a strong position, with an actionable transformation strategy and a well-progressed program of strategic divestments for its US businesses including continuing to assess options for the Fly Ash business. The board is very grateful for her service.
Board members Peter Alexander and Deborah O'Toole will follow Fagg out the door after Boral's annual general meeting in October.
Seven Group has reiterated its commitment to retaining a majority of independent directors on Boral's board.
An Independent Director's Committee has also been put in place at Boral. The company plans to instate a lead independent director to act as chair of the committee in the future.
Boral share price snapshot
Despite the recent drama, the Boral share price is having a good year on the ASX.
Right now, it has gained 47% since the start of 2021. It is also 95% higher than it was this time last year.
The company has a market capitalisation of around $8 billion, with approximately 1.1 billion shares outstanding.
