Austral Brick, a wholly owned subsidiary of Brickworks Ltd have submitted an offer to Bristile Ltd to acquire their shares and hence merge the two companies
Austral’s offer is for AUD$3.15 per share, valuing Bristile at $473 million.
Should the merger go ahead, it will create one of the country’s largest brick manufacturers and create a truly national supplier.
Brickworks is already the largest shareholder in Bristile, with an ownership of 22.7%. Their offer is conditional on their ability to acquire a further 27.4% to give them a controlling interest of 50.1%. Other conditions also apply.
The offer period for Bristile shareholders to accept the Austral offer has just been extended until 7pm on May 16th.
In the mean time, Bristile directors have advised their shareholders to ignore Austral’s offer declaring it "miserably low", having had independent advice valuing shares between AUD$3.45 and AUD$3.82.
Source: Brickworks and The Australian Stock Exchange