Boral Limited (ASX: BLD) shares are inching into the green this morning after Seven Group Holdings Ltd (ASX: SVW) nabbed more than 50% of the voting rights in the construction supplies company. Since Seven Group's holding has surpassed the much-anticipated milestone, its takeover bid will be in play for another 14 days.
In the opening minutes of trade, the Boral share price is trading 0.07% higher at $7.385, 1.5 cents lower than Seven Group's offered price.
The Seven Group share price is also currently trending higher, up 0.13% to $23.23.
Let's take a look at what Seven Group's success in grabbing Boral might mean for the companies.
Image source: Getty Images
Seven Group takes Boral on the final stretch
The Boral share price may be in for an interesting day after the company confirmed Seven Group managed to cover a gap in its holdings before the final bell rang for its takeover bid.
The takeover bid was to close at 7 pm last night unless the group successfully nabbed another 0.68% of Boral's voting rights during Thursday's trade.
Boral announced the takeover offer had been extended yesterday afternoon but didn't elaborate on the situation. The takeover bid will now close on 29 July.
However, after the market closed, Boral confirmed Seven Group had gained a majority voting power over Boral and once again urged its shareholders to reject the $7.40 per share bid.
Boral maintains Seven Group's offer undervalues Boral shares. An independent expert valued Boral shares at between $8.25 and $9.13 apiece last month.
The Boral share price has gained 14.6% since Seven Group first made a play for control of the company. Seven Group's first offer, handed down on 10 May, was just $6.50 per share – a nil premium on Boral's closing price the previous day.
Boral also says Seven Group's takeover could decrease the liquidity of its shares, which may result in Boral's removal from some S&P/ASX market indices.
It also said Seven Group plans to maintain a majority of independent directors on Boral's board, however, "these intentions may change at any time and without notice". It further pointed out that Seven Group will now have control over Boral's dividend policy.
The Motley Fool Australia reported on changes Seven Group supposedly plans to make to Boral's board yesterday.
The ASX is yet to release a notice on how much Seven Group's hold in Boral's voting power increased yesterday. However, the group's hold in Boral has increased by roughly 4% each day this week.
Boral share price snapshot
The Boral share price is having a good 2021, it's gained around 48% year to date.
It has also gained approximately 97% since this time last year.
Seven Group share price summary
Seven Group shares haven't been doing so well.
They've fallen by around 3% since the start of 2021. However, they're 32% higher than they were 12 months ago.
