According to reports in The Australian, private equity groups have been ?running a rule? over a number of Aussie companies, thanks to attractive asset valuations and reasonable lending rates from banks.
Thanks to its recent $530 million acquisition, Boral is likely to remain essentially ?untakeoverable? for the time being, but pundits tip CSR is a likely target.
The company, which divested itself of its sugar business for $1.75 billion last year, has apparently been in at least ?three or four serious discussions? about a takeover in the last ten years.
Its share price, down to a two-year low of $2.37 and falling, combined with strong financial results and a $139.1 million in net cash at the end of last year, are making the company an attractive target.
CSR is one of the largest building products suppliers in the country, distributing brands such as Gyprock plasterboard, Bradford Insulation, PGH bricks and Pavers, Monier and Wunderlich rooftiles and Viridian glass, among others. The company was, until the recent acquisition by Boral, the largest country?s largest plasterboard supplier, providing 80 million square metres of gyprock from plants in Coopers Plain Queensland, Wetherill Park NSW, Yarraville Park Victoria and Welshpool West Australia.
While no potential suitors have come out from under cover as yet, be sure to stay tuned to Quarry Magazine for details as they come to hand.
SOURCE: The Australian