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How Boral wasted $1.2b on Headwaters

As Boral CEO Zlatko Todorcevski cleans up the mess left by his predecessor, he is being closely watched by a trio of activist shareholders hoping he will unlock several billion dollars in hidden value.

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There is an apocryphal story doing the rounds of fund managers that construction group Boral bought a $3.5 billion business in the United States so former CEO Mike Kane could justify living in Florida.

This cruelly cynical story is born out of shareholder frustration over the failure of the Headwaters acquisition, which was funded with a $2 billion capital raising priced at $4.80 a share in November 2016.

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Tony Boyd is the former Chanticleer columnist. He has more than 35 years' experience as a finance journalist. Connect with Tony on Twitter. Email Tony at tony.boyd@afr.com

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    Original URL: https://www.afr.com/chanticleer/how-boral-wasted-1-2b-on-headwaters-20200824-p55osp