Soul Soul Patts and BrickWorks stocks rise after integration

Australian Investment Company shares Washington A. Soul Pattinson, also known as Soul Pats, and its Brickworks rose after the two companies announced Equalist worth 14 billion dollars (9 billion dollars).

Soul Patts shares increased by 13.78 %, while BrickWorks, the largest construction maker in Australia, jumped by 22.32 % as of 1 pm local time.

As part of the deal, a new company listed in Sydney Get all outstanding stocks From the spirit of Pats and BrickWorks. The value of the integrated entity is expected to reach about $ 9 billion, with real estate, private shares, and credit, which reached a total of $ 13.1 billion.

“Merging the soul with BrickWorks makes a lot of strategic and financial meaning, CEO and Administrative Director, Todd Barlow, He said in a statement. He added that the deal “simplifies the structure, adds the scale, and creates a more investment company.”

The integration process will relax a 56 -year -old ownership designed to enter hostile acquisitions and enhance the long -term investment strategies. Soul Patts has 43 % of BrickWorks, while Brickmaker has 26 % in Soul Pats. However, critics argued that he was suppressing the value of shareholders and the transparency of companies.

BrickWorks shareholders are scheduled to get an implicit value of $ 30.28 per share, which reflects a 10.1 % bonus on the stock closing price last Friday.

Pitt Capital Partners works as a consultant to Soul Pattinson, Citigroup Global Markets Australia has advised to BrickWorks.

The merger follows several Uncomfortable attempts To relax the crossing participation between Soul Patts and BrickWorks, including a concerted effort by the permanent investment department and the capitalism capitalism of adventure Mark Carnegie between 2012 and 2017, which was rejected after the Federal Court ruled that the structure was not harmful to the shareholders.

“The Temple (was) was strange, was created in 1969 books exchange between two companies with market covers similar to protecting each other,” said Hugh Devy, chief investment official in Atlas.

Dive added: “Historically, we have avoided both the intersecting/complex structure that both companies have been trading with a discount of its peers.”

Although this step is not important in terms of the scene of integration and purchases in Australia, investors “clearly like them”, pointing to the stock step.