Investors that own Brickworks Ltd (ASX: BKW) and Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares are voting today about merging.
There has been a cross-shareholding between the two businesses for decades to help protect against corporate raiders. Brickworks is best known as a building product business that also owns significant industrial properties. WHSP owns a diversified portfolio of ASX shares and private businesses across numerous sectors.
Why this is a good time for a merger
WHSP believes this is a “compelling opportunity” for shareholders, with a number of expected benefits.
That includes an increase in both the pre-tax and post-tax net asset value (NAV) of WHSP, as well as net cashflow from investments, on a per-share basis. In other words, it increases the underlying value and profitability.
Next, it will increase exposure to private markets and property, with the Brickworks building products division and its industrial property assets, further diversifying the portfolio.
WHSP says it’s poised to take advantage of the current market cycle, with property assets supported by tailwinds – the company named e-commerce growth and the undersupply of housing in Australia and in North America.
After the merger, TopCo (the newly-formed business that’s enacting the merger) will be renamed Washington H. Soul Pattinson and Company Limited and will trade using the ASX ticker SOL.
When will this happen?
Assuming everything goes as planned, the last day of trading for both Brickworks and WHSP shares will be 15 September 2025.
Topco shares are expected to start trading on a deferred settlement basis on 16 September 2025 and trade on a normal settlement basis on 24 September 2025.
WHSP and Brickworks will delist from the ASX on 24 September 2025.
Final thoughts on the Washington H. Soul Pattinson share price
This is definitely a positive move for shareholders as it increases the value, cashflow and probably the speed of dividend growth.
The WHSP share price and Brickworks share price has risen significantly from the news of the merger. It unlocks a lot of value and makes WHSP more appealing, though the valuation has increased too, so I wouldn’t say it’s cheap.
I’d invest for the long-term in it, but it’s not the best value option, in my opinion.
