- Wednesday, October 16, 2024
Adbri shares have surged to a 19-month intraday high following a takeover offer by CRH, a US-listed company, in collaboration with Adbri's largest shareholder, Barro Group.
According to CRH, the joint offer proposes AUD 3.20 per share for Adbri, representing a 34% increase. The stock is currently trading at AUD 3.04.
Barro Group already holds a 43% stake in Adbri, while CRH has a 4.6% interest through a cash-settled derivative. With this acquisition, CRH aims to obtain the remaining 57% of Adbri's shares that are not owned by Barro.
CRH CEO Albert Manifold highlighted the similarities between Australia's building-materials market and those in the southern US, central Europe, and eastern Europe, where CRH already has a presence. He emphasized the appealing qualities of the Australian construction materials market, including its stable dynamics and positive growth prospects.
Adbri shares reached their peak at AUD 7.05 in July 2018, but experienced a significant decline, losing over 80% of their value by October 2022, resulting in a 17-year low at AUD 1.37. However, they had recovered to AUD 2.27 prior to CRH and Barro's non-binding offer.
The proposed deal values Adbri's total equity at approximately AUD 2.1 billion.
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