(Reuters) – Australia’s Boral Ltd on Tuesday said it will sell its 50% stake in joint venture USG Boral for A$1.43 billion ($1.02 billion) and also explore opportunities for divestment in its North American building products businesses.
USG Boral is the company’s joint venture with Germany-based Gebr Knauf KG, which includes the plasterboard-based businesses in Australia, New Zealand, Asia and the Middle East.
“The sale of Boral’s interest in USG Boral to Knauf will be a step to simplifying Boral’s geographic footprint and product portfolio”, said Zlatko Todorcevski, Boral CEO & Managing Director.
The sale of its entire stake to Knauf is expected to close in 2021. Boral will receive a normal dividend of $32 million from USG Boral before the sale closes.
Australia’s largest building materials supplier added it is also assessing opportunities for divestment of its North American building products businesses and also plans to explore third party interest in the segment.
The company, which has been hit hard by disruption to construction activities amid coronavirus-related restrictions, added that cyclical pressures in Australia, South Korea and soft trading conditions in Thailand continue to affect demand.
($1 = 1.4047 Australian dollars)
Reporting by Shruti Sonal in Bengaluru; Editing by Chris Reese and Grant McCool