Boral shares continue their descent over the last month.
The post The Boral (ASX:BLD) share price is down 7% in a month. Here’s why appeared first on The Motley Fool Australia. –
The Boral Limited (ASX: BLD) share price has faced headwinds over the last month as the dust settles on its takeover from Seven Group.
Whereas the S&P/ASX 200 index (ASX: XJO) has posted a return of 2% over the last month, Boral shares have slipped 7% into the red.
Here we uncover the headwinds Boral shares have faced of late.
Seven Group acquisition offer
After the original offer was rejected, Seven came back to revise its all cash offer to $7.30 per share.
Then, Boral announced the divestment of its Australian timber business for $64.5 million, which sent its shares edging lower.
Following this, Seven’s takeover bid finished on 29 July where it was left holding around 69.5% of the construction company’s voting power.
Seven Group CEO Ryan Stokes immediately took over as chair of Boral’s board the following morning. Afterwards, shares went creeping further into the red.
Ever since Seven Group gained control on 29 July, Boral shares have cratered 7.4% into the red. Therefore, it stands to reason that selling pressure on the Boral share price may be influenced by this major event, as there is no other news for the company.
Boral share price snapshot
Despite the calamity over the last month, Boral shares have displayed strength on the charts this year to date.
The Boral share price has posted a gain of 38% since January 1, extending the previous 12 month’s return of 84%.
These results have outpaced the broad index’s climb of around 25% over the past year.
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Here’s why the Boral (ASX:BLD) share price is falling today
Boral (ASX:BLD) share price falls as Seven wins takeover and outs chair
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The author Zach Bristow has no positions 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.