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John Wylieâs Tanarra Capital says the Kerry Stokes-controlled Seven Group is trying to gain control of Boral without paying a premium and also urged the building products group to sharply accelerate its plans to install a new board chairman.
Mr Wylie, the investment banker turned private-equity-style investor, said if Seven Group reached its aim of 30 per cent of Boral it would have effective control.
The Boral board says shareholders should reject the Seven Group offer, which offers no premium.Â
âSelf-evidently thereâs no premium in the bid. Itâs trying to gain control without paying a premium,â Mr Wylie said.
Boral urges shareholders to reject $8b bid from Stokes-led Seven
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Australiaâs largest listed supplier of building products Boral has urged its investors to reject the offer from billionaire Kerry Stokesâ industrial conglomerate Seven Group Holdings that values the company at $8 billion.
Boral said its committee of directors believed the $6.50 offer was âopportunisticâ and delivered a ânilâ premium to its last close. Boral director and Seven managing director Ryan Stokes has stepped off the Boral board while it considers the proposal.
Seven Group already holds a 23.18 per cent stake in Boral.
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Things will be a lot more frosty when Ryan Stokes eventually re-enters the Boral boardroom after a self-imposed exile while the Seven Groupâs nil-premium takeover offer is still on foot.
After much to-ing and fro-ing by Boral - and angst from other shareholders after the Kerry Stokes-controlled Seven Group built up a meaningful stake in the troubled building products company - it was decided that only one board seat should be granted to Seven. Seven wanted two seats and a compromise solution was hammered out late last year.
Seven Group boss Ryan Stokes.Â
Janie Barrett
Ryan Stokes got the nod as the Seven representative and became a Boral director. Everyone was supposedly on the same page. Seven wasnât overly keen on Boral keeping its exposure to the North American business and believed it should cut its losses and return to its roots as an Australia-focused business.
Boral says reject opportunistic Seven Group bid afr.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from afr.com Daily Mail and Mail on Sunday newspapers.