Boral share price: where next as Seven ups takeover bid?

Recent developments at a glance

It’s been a dramatic few weeks for building materials company Boral (ASX: BLD).

On Monday the company announced it had entered into a binding agreement to sell its North American Building Products business. The sale price was set at USD$2.15 billion or AUD$2.9 billion.

Then on Tuesday, Boral updated the market on Seven Group Holding's off market takeover bid for the company, noting that Seven had dropped all conditions relating to their acquisition offer.

That offer was for $6.50 per share, a deal, which according to Boral’s management: undervalues the company.

As such the Board implored shareholders to reject Seven’s offer.

Then on Friday, another twist in the takeover bid was revealed, with Seven upping their bid as well as extending the timeline for Boral shareholders to potentially accept their offer. We look at those updates below.

Extended time-frame

First, Seven said it would extend the time-frame for shareholders to potentially accept their offer –saying that the Offer Period would now end at 7:00 pm, on 2 July.

The offer was previously set to expire at 7:00 pm, on 30 June.

As of Friday, the Seven Group is reported to hold a 24.5% stake in Boral.

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New offer

Looking at the new offer price(s), Seven Group Holdings raised its takeover cash offer price to $7.30 per share.

Specifically, that increase would be triggered if Seven 'received acceptances under the Offer sufficient to increase its aggregate interest in Boral Shares by approximately 5% to 29.5% or more' before 2 July.

In addition to that, a second conditional increase to $7.40 per share was also flagged, if Seven 'receives acceptances under the Offer sufficient to increase its aggregate interest in Boral Shares by approximately 10% to 34.5% or more' before 7 July.

Boral share price

The stock started the day in a so-so fashion, with BLD opening at $6.91 per share before dropping to an intraday low of $6.71 per share a little before 11:30 AM.

Unsurprisingly, following the announcement regarding Seven’s updated offer, the stock was bid higher, jumping close to 10% by the afternoon session, to finish out the day just above the increased offer price, at $7.34 per share.

This caps of a dramatic turnaround for the company, with the building materials company up an impressive 47% since January. In that time – the ASX 200 benchmark by comparison – has risen 9.33%.