What will happen to CSR shares next week?

It's a huge month for ASX veteran CSR this June…

| More on:
A man packs up a box of belongings at his desk as he prepares to leave the office.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

You might have heard some ASX talk in recent weeks surrounding CSR Ltd (ASX: CSR) shares. That's understandable. CSR, after all, is an ASX veteran, having been on the ASX boards for more than six decades.

The company itself has been around for almost 170 years. It has changed significantly over this period, morphing from its roots as a sugar refiner into its current role as a manufacturer of building and construction supplies.

But June 2024 will go down as one of the most significant months in CSR's long history. That's because its shares are set to depart from the ASX for the first time in a generation.

As we've been covering here at the Motley Fool, CSR has been in the middle of an acquisition courtship over the past few months. Back in February, we learned that the French company Saint-Gobain was interested in acquiring CSR in full.

What will happen to CSR shares when the company is acquired?

Saint-Gobain made a bid of $9 per share in cash for CSR. The merger proposal was cleared through the usual legal and regulatory motions. Then just yesterday, shareholders accepted the offer at a meeting with a 'yes' vote of 98.55%. This means that ownership of CSR will transfer to Saint-Gobain. And CSR shares will disappear from both the S&P/ASX 200 Index (ASX: XJO) and the Australian share market.

It will be quick too. CSR's last day on the ASX has been set for next Wednesday, 19 June. After that date, the shares will be suspended from trading.

On 1 July, existing CSR shareholders will then receive the 12 cents per share fully franked dividend that CSR revealed earlier this month. Those shareholders will then receive their $8.88 per share ($9 minus the value of the dividend) in cash from Saint-Gobain on 9 July in exchange for their shares. At this point, CSR will become the sole property, and a division of Saint-Gobain.

In terms of the ASX 200 Index, CSR's spot in this exclusive club will be taken up by financial stock Judo Capital Holdings Ltd (ASX: JDO) prior to the commencement of trading on Thursday, 20 June.

So CSR's long ASX history is set to come to an end in under a week. Maybe the company will return to the Australian stock market one day. But for better or worse, come next week, there will be one less share for ASX investors to buy on our local markets.

Should you invest $1,000 in Csr right now?

Before you buy Csr shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Csr wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Sebastian Bowen 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 Scott Phillips.

More on Mergers & Acquisitions

A graphic showing three hands holding red paddles with the word BID, indicating a bidding war for an ASX share company
Mergers & Acquisitions

Guess which ASX All Ords stock just received a new takeover offer

Let's see which stock is in the crosshairs of a rival.

Read more »

Man with rocket wings which have flames coming out of them.
Technology Shares

Guess which ASX All Ords stock is rocketing 34% on takeover deal

This stock looks set to leave the ASX boards in the near future after accepting a takeover deal.

Read more »

Two miners standing together.
Gold

Northern Star Resources set to buyout rival De Grey mining

As gold soars, ASX miners continue to mine the acquisition pipeline.

Read more »

Man with rocket wings which have flames coming out of them.
Mergers & Acquisitions

Guess which ASX 300 stock is rocketing 15% on big takeover offer

Not every share is being dragged lower on Monday.

Read more »

Happy woman holding white house model in hand and pointing to it with a pen.
Mergers & Acquisitions

Up 70% this year, Domain share price wobbles on CoStar takeover update

Domain released an update on CoStar’s $2.8 billion takeover bid.

Read more »

Man with rocket wings which have flames coming out of them.
Mergers & Acquisitions

Guess which ASX stock is up 100%+ on takeover deal

This share is catching the eye on Thursday. Let's see what is happening.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Mergers & Acquisitions

James Hardie shares crash 11% amid $14b AZEK acquisition

The market doesn't appear keen on this deal. Let's see what it offers.

Read more »

Workers inspecting a gas pipeline.
Mergers & Acquisitions

Here's why the Cleanaway share price rocketed 8% today

Cleanaway shares surged on some big news this morning.

Read more »