Seven in $8bn Boral bid

Kerry Stokes' Seven Group Holdings has announced an off-market takeover bid to up its stake in Boral, valuing the Sydney-based industrial company at nearly $8 billion.

The proposal was lodged on the ASX after the close of business on Monday.

Seven Group holds 23.2 per cent of Boral already, in addition to 40 per cent of Seven West Media.

It also has control of Westrac and Coates Hire and a 28.5 per cent slice of Beach Energy.

Seven’s bid will pay $6.50 per share, which the company said was a 5.3 per cent premium on the volume weighted average price of Boral for the past month.

Boral shares were changing hands at $6.50 today.

Boral produces building and construction materials and has about 17,000 employees.

While Seven's bidding documents show it is offering to acquire all Boral shares, the company said it would be happy to take its holding to about 30 per cent.

Seven would need to stump up about $6.5 billion if it bought all remaining shares.

The bidder’s statement shows the company will largely fund the offer with a $5.5 billion loan bridge facility provided by ANZ, Barclays Bank and Westpac.

Seven Group's advisers include Barrenjoey Capital Partners, a Sydney-based firm supported by Barclays.

The legal adviser was listed as Allens Linklaters.