Adbri Gets Takeover Offer From CRH, Barro Group
By David Winning
SYDNEY--Building materials supplier Adbri said it has received a takeover offer from U.S.-listed CRH and the Barro Group that values its equity at around $1.41 billion.
Adbri said it is evaluating the cash offer of 3.20 Australian dollars (US$2.14) a share and has allowed the bid group until February 28 to scrutinize its books on an exclusive basis.
The Barro Group owns 42.7% of Adbri's stock, while CRH has a 4.6% interest in the Australian company through a cash-settled derivative.
The takeover offer is pitched at a 41% premium to Adbri's closing price of A$2.27/share on Friday. Adbri's shares are down around 19% since hitting a high in mid-August ahead of its earnings report for the first half of its financial year.
Australia has one of the world's hottest real-estate markets despite an unprecedented rise in interest rates, adding a new pillar of support for construction materials that were in high demand during the pandemic when households flush with stimulus money sought to renovate their homes.
Record migration has supported housing costs after pandemic border restrictions were rolled back, prompting Australia's government to take steps to help out homebuyers and renters. The government recently rolled out a new housing fund worth the equivalent of $6.6 billion aims to finance the construction of tens of thousands of new homes in coming years.
Write to David Winning at david.winning@wsj.com
(END) Dow Jones Newswires
December 17, 2023 17:34 ET (22:34 GMT)
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