Boral sells out of bricks joint venture with CSR

Boral has agreed to offload its 40pc stake in the Boral CSR Bricks joint venture to CSR for $134m.

Bingh Duong checks loading of bricks on forklift at Boral Brickworks at Bringelly, southwest of Sydney in 2003. (Picture: Alan Pryke)

Boral has agreed to sell its 40 per cent interest in the Boral CSR Bricks joint venture to CSR for $133.9 million ($US101.7 m).

Boral said Monday it will recognise a post-tax profit on the sale of the between $20m and $25m, which will be reported as a significant item in fiscal 2017.

The business was formed when Boral (BLD) and CSR (CSR) last year merged their east coast brick manufacturing businesses.

Boral’s Chief Executive Mike Kane said the joint venture had performed well and delivered significant synergies, however Boral now wants to redirect the capital toward its core operations. The sale is expected to be effective November 1.

Dow Jones Newswires