Seven Group (ASX:SVW) shares jump as Boral takeover offer extended

The timeline on the takeover offer put to Boral has been pushed out by 5 days.
The post Seven Group (ASX:SVW) shares jump as Boral takeover offer extended appeared first on The Motley Fool Australia. –

Seven Group Holdings Ltd (ASX: SVW) shares are on the rise today after the company extended its takeover offer for construction materials company Boral Limited (ASX: BLD).

At the time of writing, the Seven Group share price is trading at $21.76, 3.47% higher than yesterday’s close.

Meanwhile, the Boral share price is also trending higher – up 0.59% to $6.77.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is in the green as well, gaining 0.57% for the day so far.

In an announcement to the ASX after Thursday’s close, Seven Group, a diversified investment company, has pushed the final date its takeover offer will close back by 5 days to 30 June.

Takeover bid extended

Originally, Seven’s takeover offer was to end on 25 June, but now Boral shareholders will have an extra 5 days to accept Seven Group’s offer of $6.50 per Boral share.

The offer represented a nil premium on the previous closing price of Boral shares. Now, it’s an almost 4% discount to the current Boral share price.

On receiving the offer, Boral quickly advised its shareholders to reject it, saying it undervalued the company.

Boral released its target’s statement last week. Within it, Boral stated that Seven Group’s bid was opportunistic and might have valued the company at 40.5% less than its true worth.

According to Boral, Seven Group was attempting to get a hold of Boral shares before the construction materials company began its strategy to increase its earnings before interest and tax (EBIT) by $300 million.

Seven Group currently holds around 23% of all Boral shares. As The Motley Fool reported at the time Seven Group’s takeover offer was placed, the bid was likely an attempt to evade “creep rules”. In this case, “creep rules” meant Seven Group couldn’t increase its stake in Boral above a certain point without issuing a takeover bid.

Seven Group claims it would be happy to walk away from the takeover offer with a 30% stake in Boral.

Boral share price snapshot

The Boral share price is having a great 2021 on the ASX.

Right now, it’s up by around 37% year to date. It has also gained almost 84% over the last 12 months.

Seven Group share price snapshot

The Seven Group share price needs all the good news it can get, and now we’ll have to wait an extra 5 days to potentially hear of it.

Seven Group shares have fallen by around 7% since the start of this year. However, they’ve gained 23% since this time last year.

The post Seven Group (ASX:SVW) shares jump as Boral takeover offer extended appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

Buy these 6 ASX shares, say Wilson analysts

ASX 200 rises, Woolworths acquisition approved, Austal in rough waters

Boral (ASX:BLD) states Seven’s takeover bid could undervalue it by 40%
M&A rumour fires up the Iress (ASX:IRE) share price today
The ASX shares benefiting the most from the company spending boom

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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!