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  • Boral (BLD) has completed the sale of its 50 per cent share in the USG Boral joint venture to Gebr Knauf KG for US$1.015 billion (around A$1.33 billion)
  • In October last year, both companies entered an agreement for Boral to sell its interest in the joint venture after a compelling offer was received
  • Boral will use the funds to reduce its net debt position from $1.9 billion to its targeted net debt of $1.5 billion
  • The remaining $1 billion will be used to reinvest in the business and return to shareholders
  • Boral will also undertake an on-market share buy-back and has revealed it intends to buy back up to 10 per cent of issued shares over the next 12 months
  • Company shares are steady on the market and are trading at $5.81

Boral (BLD) has completed the sale of its 50 per cent share in the USG Boral joint venture to Gebr Knauf KG for US$1.015 billion (around A$1.33 billion).

In October last year, both companies entered an agreement for Boral to sell its 50 per cent interest in the joint venture (JV).

The USG Boral JV includes the plasterboard-based businesses used for walls and ceilings in Australia, New Zealand, the Middle East and Asia.

This sale comes after, what the company called, a thorough assessment and compelling offer.

Boral will use the funds to reduce its net debt position from $1.9 billion to its targeted net debt of $1.5 billion.

The remaining $1 billion will be used to reinvest in the business and return to shareholders.

“The sale of our 50 per cent interest in USG Boral to Knauf for an attractive premium creates substantial value for Boral’s shareholders,” CEO & Managing Director Zlatko Todorcevski said.

“The sale enables Boral to reduce net debt to our current target of $1.5 billion and create surplus capital available for return to shareholders, which is consistent with Boral’s financial framework,” he added.

Boral will also undertake an on-market share buy-back and has revealed it intends to buy back up to 10 per cent of issued shares over the next 12 months.

Company shares are steady on the market and are trading at $5.81 at 12:24 pm AEDT.

BLD by the numbers
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