Latest news with #SoulPattinson
Bloomberg
02-06-2025
- Business
- Bloomberg
Soul Patts, Brickworks Combine After 56 Years of Cross-Ownership
Australian investment firm Washington H. Soul Pattinson and Co. and Brickworks Ltd. agreed to combine, finally simplifying a cross-shareholding between the two businesses that stretches back almost 60 years. Soul Patts, as it's known, owns 43% of Brickworks. Australia's largest brickmaker has a 26% stake in Soul Patts. The arrangement was designed to deliver stable dividends during construction downturns.
West Australian
02-06-2025
- Business
- West Australian
Long-time partners Brickworks, Washington H. Soul Pattinson tie knot for $14b
Investment house Washington H. Soul Pattinson has secured a $14 billion deal to snap up diversified industrial group. Brickworks. The union ends a bizarre decades-long cross-shareholding each company had in the other, with Soul Pattinson holding 43 per cent of Brcikworks, and the building materials company holding 26 per cent of Soul Pattinson. Soul Patterson chief executive and managing director Todd Barlow said the deal made a lot of strategic and financial sense. 'It simplifies the structure, adds scale, and creates a more investable company,' Mr Barlow said. 'In many ways Soul Patts and Brickworks have evolved together and shared in the capital stability provided by our cross-shareholding over the past 56 years. 'The cross-shareholding served an important purpose over the years by achieving diversification of earnings, promoting long-term investment decisions and creating significant long-term value for shareholders. 'However, we believe the combined business will be very well diversified and in an even stronger position to deliver enduring value for all shareholders.' Brickworks boss Mark Ellenor said the building materials company had undergone significant evolution over the past few decades, with the growth in value of its property assets and its building products portfolio. 'The time is now right to combine with Soul Patts, bring our portfolios under one investment company, and become a well-resourced and more diversified group delivering long term value for our shareholders,' Mr Ellenor said. The union will create a new ASX-listed company, with Brickworks shareholders receiving an implied value of $30.28 a share — a premium of 10.1 per cent to their last closing share price. Based on the merger ratio and issue of shares, Soul Patts shareholders, Brickworks shareholders and new company shareholders will receive about 72 per cent, 19 per cent and 9 per cent, respectively. More to come.
