Brickworks rejects restructure calls

Brickworks rejects restructure calls

Brickworks has firmly rejected calls for a restructure of its cross-shareholding with Washington H Soul Pattinson.

Brickworks has shut the door on those keen to end the company's decades old cross-shareholding with Washington H Soul Pattinson, vowing not to waste any more time on proposals with little substance.

Brickworks directors said in a letter to shareholders that the board would not waste resources on unsolicited short-term restructuring proposals.

The building products company had rejected calls from major shareholder Perpetual Investments and venture capitalist Mark Carnegie to break up the cross-shareholding.

Brickworks chairman Robert Millner said a restructure was not in the best interests of shareholders and the cost of the reviews during the past two years had placed a heavy burden on the company.

"In a lot of these proposals, people haven't done their homework and they don't stack up," he said.

"We have got limited resources so we had a lot of people spending time on this when they should have been running the businesses."

In a cross-shareholding arrangement in place since 1969, Brickworks holds 42.7 per cent of WHSP, while WHSP owned 45.5 per cent of Brickworks.

Both companies are chaired by Mr Millner.

Mr Millner said investors who buy shares in either Brickworks or WHSP know there is a cross-shareholding in place.

"Nothing has changed since 1969," Mr Millner said.

Brickworks said its annual shareholder return had outperformed the broader market over the past five, 10 and 15 years.

The letter said Brickworks would continue to consider alternatives for its business during the company's annual strategic planning sessions.

Perpetual did not respond to requests for comment.

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