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Highlights
Washington H Soul Pattinson (ASX:SOL), listed on the All Ordinaries and a constituent of the ASX 200, and Brickworks (ASX:BKW), part of the All Ordinaries index, have announced a strategic merger to consolidate their positions in private capital, industrial property, and building products. The merger marks the conclusion of a longstanding cross-ownership structure that has been in place for several decades.
Merger Structure and Shareholder Terms
Under the agreed terms, existing Brickworks shareholders are set to receive an uplift in valuation based on the last traded share price, while Soul Pattinson shareholders will receive an equivalent stake in the new merged entity on a one-for-one basis. The consolidation will involve the issuance of new shares to address Brickworks’ financial obligations, including liabilities and costs associated with the transaction.
Following completion, the merged company will retain the Washington H Soul Pattinson name along with its ASX ticker code, continuing to be anchored in long-term capital management, diversified asset, and property.
Broader Exposure Across Business Segments
Shareholders of Soul Pattinson are expected to benefit from direct access to the building products segment across Australia and North America, along with consistent rental income streams from high-value industrial property. Brickworks shareholders will gain access to a wider array of assets spanning infrastructure, telecommunications, resources, and other private capital sectors through Soul Pattinson’s extensive portfolio.
The transaction structure has been designed to reflect a balanced integration of both companies’ value streams. The boards have indicated a commitment to delivering benefits evenly to all shareholders and have confirmed plans to engage independent experts to assess the proposal from a shareholder value standpoint.
Executive Perspectives on Strategic Alignment
Soul Pattinson chief executive officer Todd Barlow described the merger as an evolution of a long-shared financial framework that has supported both businesses through different economic cycles. He indicated that the unified entity would offer stronger diversification and improved financial resilience.
Brickworks chief executive officer Mark Ellenor acknowledged the transformation Brickworks has undergone in recent years, particularly in property asset growth and building materials. He indicated the timing of the merger aligns with their strategic outlook for sustained growth within a more diversified platform.
Unanimous Board Endorsement with Independent Review
Both company boards have unanimously endorsed the merger, with each set to appoint external advisors to determine the value alignment for shareholders. The integration of these two established companies is expected to redefine the scale and capabilities of the merged entity within the ASX 200 landscape.
