James Hardie Addresses Investor Concerns Amid Azek Merger Developments

April 28, 2025 10:42 AM AEST | By Team Kalkine Media

Google News:

James Hardie Addresses Investor Concerns Amid Azek Merger Developments — Image source: shutterstock

Recent News

GameStop bets on trading cards, stock continues slide

A Nationwide Celebration of Youth Sports at DICK’S House of Sport

AEG Presents College Connection Program Inspires Future Industry Leade...

How Yum! Brands Maximizes Franchise Operating Capability

Highlights

James Hardie commits to maintaining independent governance post-merger

Shareholder value remains a key focus for management

ASX merger approval process under review after investor reactions

James Hardie Industries (ASX:JHX) has issued a public letter to shareholders to address growing concerns surrounding its proposed $14 billion merger with Azek (NYSE:AZEK). This communication follows recent media coverage suggesting that the Australian Securities Exchange (ASX) is re-examining the approval processes for major company mergers and acquisitions.

In the letter, James Hardie Industries (JHX) emphasized its ongoing commitment to strong corporate governance. The company confirmed that it would continue to have an independent chair and ensure that a majority of its board remains composed of independent directors. This move is seen as a step to bolster investor confidence and maintain transparency in the leadership structure as the merger progresses.

The building materials supplier also reassured investors that management's remuneration practices would remain closely tied to shareholder value creation. Annual advisory votes on executive pay packages will be conducted, ensuring shareholders have a voice in shaping compensation practices. Importantly, the company clarified that it is not seeking to change its listing to a foreign exempt status — a point that had caused some confusion in earlier discussions.

Adding further assurance, James Hardie (JHX) confirmed that any potential changes to its ASX listing status would be put to a shareholder vote, ensuring that investors maintain influence over key corporate decisions.

The recent investor concerns stemmed from a report indicating that the ASX allowed James Hardie (JHX) to move forward with the merger without seeking a direct shareholder vote. This decision sparked backlash from major asset managers and superannuation funds, prompting the ASX to review its approach to shareholder approval requirements for mergers, acquisitions, and reverse takeovers.

As the merger discussions with Azek (NYSE:AZEK) move forward, all eyes remain on how James Hardie Industries (JHX) navigates the regulatory landscape and maintains shareholder trust. The company's latest communication signals a clear intent to prioritize transparency, governance, and investor interests during this pivotal time.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.