Latest news with #WashingtonHSoulPattinson
AU Financial Review
3 days ago
- Business
- AU Financial Review
This is what the Soul Patts deal is really about
There was no shortage of nostalgia floating around Australian capital markets on Monday as Washington H Soul Pattinson announced their $14 billion merger with Brickworks, and the end of the cross-shareholding that has bound the two groups together for more than half a century. But investors are a notoriously unsentimental lot and focus very quickly turned to the big question that surrounds this deal: why now?
Reuters
3 days ago
- Business
- Reuters
Australia's Soul Patts to take over Brickworks in $9 billion merger
June 2 (Reuters) - Australian investment firm Washington H Soul Pattinson ( opens new tab will buy out its building products affiliate Brickworks ( opens new tab creating a new company worth A$14 billion ($9.03 billion), the companies said on Monday. The deal streamlines the two companies' complex cross-ownership of each other that has been in place for nearly 60 years and has long been criticised by corporate governance experts in Australia. Brickworks shareholders will receive 0.82 shares in the new firm with an implied value of A$30.28 per share, a 10.1% premium to the stock's closing share price on Friday, valuing the building products maker at A$4.62 billion ($3 billion). Its shares were 17.7% higher in early trade on Monday at A$32.37, while Soul Patts stock gained 9.2%. Brickworks was set for its biggest single day rise since September 2009 and was the top gainer on the ASX200 (.AXJO), opens new tab index, which was down 0.1%. Soul Patts would own 72% of the new company. Holders of Brickworks would own 19%, while the remainder would be offered to new shareholders. Soul Patts investors will receive one share in the new company for each of their existing shares. Soul Patts has a 43% shareholding in Brickworks, and Brickworks owns 26% of Soul Patts. With the deal, Soul Patts' free float will increase from A$8.4 billion to A$12.6 billion, Chief Executive Todd Barlow told an investor briefing Monday. The new entity has received commitments worth A$550 million in shares, fully underwritten by Aitken Mount Capital. A shareholder vote to approve the deal is due to be held later this year. ($1 = 1.5499 Australian dollars)
CNBC
3 days ago
- Business
- CNBC
Australia's Soul Patts to takeover building products affiliate Brickworks in $9 billion merger
Australian investment company Washington H Soul Pattinson will buy out its building products affiliate Brickworks in a deal valuing the latter at A$4.62 billion ($3 billion), the companies said on Monday. The deal would merge the companies, and a new Australia-listed firm would be established with an expected valuation of A$14 billion ($9 billion). Stockholders in Washington H Soul Pattinson would own 72% of the newly formed company. Holders of Brickworks would own 19% while the remainder would be offered to new shareholders. Soul Patts has a 43% shareholding in Brickworks and Brickworks owns 26% of Soul Patts. The new entity has received commitments worth A$550 million in shares, fully underwritten by Aitken Mount Capital. Soul Patts is offering an implied value of A$30.28 for every Brickworks share, a 10.1% premium to the stock's last close.
Wall Street Journal
3 days ago
- Business
- Wall Street Journal
Soul Patts, Brickworks to Cement Ties With $9 Billion Merger
SYDNEY—Australian investment manager Washington H. Soul Pattinson SOL 8.43%increase; green up pointing triangle and building-products maker Brickworks BKW 15.41%increase; green up pointing triangle agreed to merge into a single company worth US$9 billion, cementing a formal relationship that began almost 60 years ago. The companies, which have held stakes in each other since 1969 as protection against hostile takeovers, on Monday said that they plan to cancel their cross-holdings and form a group with significantly increased scale and liquidity.
Yahoo
3 days ago
- Business
- Yahoo
Soul Patts to takeover building products affiliate in $9 billion merger
(Reuters) - Australian investment company Washington H Soul Pattinson will buy out its building products affiliate Brickworks in a deal valuing the latter at A$4.62 billion ($3 billion), the companies said on Monday. The deal would merge the companies and a new Australia-listed firm would be established with an expected valuation of A$14 billion ($9 billion). Stockholders in Washington H Soul Pattinson would own 72% of the newly formed company. Holders of Brickworks would own 19% while the remainder would be offered to new shareholders. Soul Patts has a 43% shareholding in Brickworks and Brickworks owns 26% of Soul Patts. The new entity has received commitments worth A$550 million in shares, fully underwritten by Aitken Mount Capital. Soul Patts is offering an implied value of A$30.28 for every Brickworks share, a 10.1% premium to the stock's last close. ($1 = 1.5523 Australian dollars) ($1 = 1.5513 Australian dollars) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
