Boral Australia will return $ 3 billion to shareholders, shares have risen

(Reuters) – Construction materials maker Boral (OTC 🙂 Ltd will return $ 3 trillion ($ 2.1 trillion) to its shareholders, mainly using profits from the sale of several North American businesses that have helped it reorient to the domestic market.

Shares of the Australian listed company rose 6.8% to A $ 6.27, the highest internal percentage per day since June 2021.

The cash distribution will be a capital reduction of A $ 2.65 per share and A $ 0.07 per share dividend, Boral said on Tuesday.

That means a big chunk of the return will go to its largest shareholder, Kerry Stokes ’Seven Group Holdings media millionaire tycoon.

Shares of Seven also rose about 2% after the announcement.

Seven Group owns almost 70% of Boral, up from nearly 20% in September last year. In July, Boral Seven leader Ryan Stokes was named president.

Boral has been selling U.S. businesses since 2020, when a surge in overseas purchases led to a major cancellation that year. He recently sold his North American fly ash business for $ 755 million.

Its in-house business generates more than half of its revenue, and its low interest rate has benefited from record-breaking real estate prices.

“Our redesigned portfolio focuses on enhancing the performance and profitability of Australia’s leading building materials business,” said Zlatko Todorcevsk CEO.

Boral will announce his mid-year earnings on Feb. 14.

($ 1 = $ 1.4158)