Boral has offloaded its 17.6% stake in Adelaide Brighton for $210 million, heading off pressure for the building materials group to go to the market for a capital raising.
The company confirmed the sale (at $1.95 a share) in a statement to the ASX this morning, which it said would help to pay down its debts.
The stake was acquired for $1.55 a share in 2003, when Boral launched its ill-fated bid for the cement company. The takeover was blocked by the Australian Competition and Consumer Commission.
Boral has been hit hard by the housing slump in Australia and the US. The fall in the Australian dollar has placed even more pressure on the company, which has its main debt facility in US dollars.
In January, Boral shrugged off speculation it could breach the covenants on the $US700 million debt facility on concerns it could be forced to writedown the value of its US operations.
srochfort@smh.com.au
SMH
