Boral has completed the sale of several construction materials businesses, allowing it to pay its shareholders up to $3 billion in surplus capital.
The company confirmed receipt of its divestment in the North American Products business to Westlake Chemical Corporation for $USD2.15 billion ($AUD2.94 billion), which came into effect on 1 October.
Boral also completed the sale of its Australian Timber business for $AUD64.5 million to Pentarch Group.
Thirdly, the sale of Boral’s 50 per cent stake in Meridian Brick in North America was finalised with Wienerberger for $USD125 million.
The combined sales value will reduce the company’s net debt below $1 billion, after it reached $2.197 billion in mid-2020.
Boral chief executive officer and managing director Zlatko Todorcevski said the sales were a win for all parties.
“We wish the new owners of these businesses every success for the future,” Todorcevski said.
“Completion of these strategic divestments is unlocking significant value for Boral’s shareholders.”
The sales finalised Boral’s move away from building products to enhance its focus on construction materials.
Todorcevski said the company had been transformed into a much stronger one with a clearer focus on Australia.
“We have now reached an important milestone in re-positioning Boral as a focused construction materials company in Australia,” he said.
“We have enviable strategic assets in Australia and a strong competitive advantage upon which to build.”
The final business to be sold in line with this strategy is the North American fly ash business which Boral will provide an update on at its upcoming Annual General Meeting.