The Boral Limited (ASX: BLD) share price has finished the trading day on Monday, up 2.21% to $6 per share.
Below we look at the latest from the building products and construction materials company.
Why is Boral making headline news?
Boral’s share price may have seen some impact from news reported by the Australian earlier today.
According to that article, the company has offloaded “its Australian roof tiles business to private equity firm Lutum and three members of its former management”. The selling price is believed to be somewhere below $30 million.
It’s expected that Boral will hold onto its roof tile business at its Sydney real estate sites while selling the rest of the operation as part of its ongoing strategy to divest its building products segments in Australia.
Today’s bounce in will come as welcome news to investors, who’ve watched shares plummet 12% over the last month.
The Boral share price has come under pressure recently as changes in the S&P Dow Jones Indices to the S&P/ASX Indices will see Boral removed from the ASX 100 Index as of 20 September.
While that may not matter much to you or me, it could have a material impact on some of the larger fund managers who are limited to investing in the top-100 companies by market cap.
Shares in the construction materials company also took a hit during Seven Group Holdings Ltd (ASX: SVW) takeover manoeuvres.
That takeover bid was finally completed on 29 July, leaving Seven Group with a majority stake of 69.5% of Boral’s shares. This saw Seven Group’s CEO Ryan Stokes swiftly replace the company’s previous Board chair, Katheryn Fagg.
Boral share price snapshot
Despite a few recent woes, the Boral share price remains up 21% year-to-date. That compares to a gain of 11% for the S&P/ASX 200 Index (ASX: XJO) so far in 2021.
Over the past 5 days, Boral’s shares are down 0.5%.