What will happen to CSR shares next week?
A man packs up a box of belongings at his desk as he prepares to leave the office.
You might have heard some ASX talk in recent weeks surrounding CSR Ltd (ASX: CSR) shares. That's understandable. CSR, after all, is an ASX veteran, having been on the ASX boards for more than six decades.
The company itself has been around for almost 170 years. It has changed significantly over this period, morphing from its roots as a sugar refiner into its current role as a manufacturer of building and construction supplies.
But June 2024 will go down as one of the most significant months in CSR's long history. That's because its shares are set to depart from the ASX for the first time in a generation.
As we've been covering here at the Motley Fool, CSR has been in the middle of an acquisition courtship over the past few months. Back in February, we learned that the French company Saint-Gobain was interested in acquiring CSR in full.
What will happen to CSR shares when the company is acquired?
Saint-Gobain made a bid of $9 per share in cash for CSR. The merger proposal was cleared through the usual legal and regulatory motions. Then just yesterday, shareholders accepted the offer at a meeting with a 'yes' vote of 98.55%. This means that ownership of CSR will transfer to Saint-Gobain. And CSR shares will disappear from both the S&P/ASX 200 Index (ASX: XJO) and the Australian share market.
It will be quick too. CSR's last day on the ASX has been set for next Wednesday, 19 June. After that date, the shares will be suspended from trading.
On 1 July, existing CSR shareholders will then receive the 12 cents per share fully franked dividend that CSR revealed earlier this month. Those shareholders will then receive their $8.88 per share ($9 minus the value of the dividend) in cash from Saint-Gobain on 9 July in exchange for their shares. At this point, CSR will become the sole property, and a division of Saint-Gobain.
In terms of the ASX 200 Index, CSR's spot in this exclusive club will be taken up by financial stock Judo Capital Holdings Ltd (ASX: JDO) prior to the commencement of trading on Thursday, 20 June.
So CSR's long ASX history is set to come to an end in under a week. Maybe the company will return to the Australian stock market one day. But for better or worse, come next week, there will be one less share for ASX investors to buy on our local markets.
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.