The Brickworks Limited (ASX: BKW) share price is up 0.6% in morning trading amid news related to Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) (AKA Soul Patts). The Brickworks rise comes at the same time as the S&P/ASX 200 Index (ASX: XJO) being down 0.2%.
Brickworks and Soul Patts have been closely linked for decades due to their cross-ownership partnership. Soul Patts owns 43% of Brickworks and has been a shareholder since 1969.
The purpose of that structure was, and still is, to deter corporate raiders. Brickworks benefits by owning approximately a quarter of the diversified investment house.
The two businesses are becoming even closer after an appointment to the Brickworks board.
New Brickworks director
Brickworks has appointed Soul Patts CEO Todd Barlow to its board as a non-executive director.
As such a substantial holder of Brickworks shares, Soul Patts has had two directors on the Brickworks board. Michael Millner recently retired from the Brickworks board of directors at the 2023 annual general meeting, so Barlow will become the second nominee director.
Robert Millner has been the chair of Brickworks for 25 years and the chair of Soul Patts for 26 years.
The appointment of Barlow to the board maintains the number of directors at seven after Michael Millner's retirement. Barlow will also be a member of the remuneration and nomination committee.
Barlow has been the CEO and managing director of Soul Patts since 2015, having previously been the managing director of Pitt Capital Partners for five years.
Brickworks also announced that Malcolm Bundey, who has been a non-executive director since October 2019, has been appointed as the deputy chair of Brickworks effective today.
Management comments
The new Brickworks deputy chair, Malcolm Bundey, said:
We are pleased to welcome Todd to the board of directors of Brickworks. The company looks forward to leveraging his deep experience to assist us in achieving performance objectives across our diversified portfolio of businesses.
New Brickworks director Todd Barlow said:
I look forward to continuing the long association Soul Patt's has with Brickworks and assisting Brickworks to execute its strategy to deliver sustainable earnings growth and long-term value to shareholders.
Barlow's ownership of Brickworks shares
Investors are able to learn how many shares a director has through ASX disclosures.
The Brickworks ASX appendix 3X announcement showed Todd Barlow has a total of 2,000 Brickworks shares. This currently has a value of just over $53,000.
Brickworks share price snapshot
In the last 12 months, the Brickworks share price is up just over 1%, as shown on the chart below.
