The Fin
How a $14 billion deal can happen without a shareholder vote
May 7, 2025
James Thomson, a knowledgeable Chanticleer columnist for the Australian Financial Review, is joined by Joyce Moullakis, an Associate Editor covering corporate deals. They dive into the controversial $14 billion acquisition by James Hardie that occurred without shareholder voting rights. The discussion highlights investor backlash and the implications for corporate governance. They emphasize the need for transparency and shareholder participation, as major fund managers push back against the perceived disenfranchisement and call for rule revisions in the ASX.
23:15
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- James Hardie's $14 billion acquisition has sparked significant backlash among shareholders, questioning management's decision amid economic uncertainties.
- The controversy over bypassing shareholder votes has led to calls for ASX rule reviews to enhance corporate governance and investor rights.
Deep dives
Investor Outrage Over James Hardy's Acquisition
James Hardy's recent $14 billion acquisition of the American company ASIC has ignited significant backlash among local shareholders. Many investors believe the company is overpaying for ASIC, especially amid uncertainties in the US economy and its implications for the building materials sector. The announcement resulted in a sharp decline of nearly 15% in James Hardy's share price, reflecting the widespread discontent and concern over what they view as a strategic misstep. Additionally, the timing of the deal, paired with the historical context of James Hardy's previous controversies, has left investors questioning management's decision-making process.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
