Brickworks Declares 48.4c Dividend Tied to Soul Patts Amid Merger Plans
Brickworks Limited has announced a fully franked final dividend of 48.4 cents per share for FY2025, linked to Washington H. Soul Pattinson’s dividend as part of their proposed merger. The dividend will be paid regardless of the merger outcome.
- Final dividend of 48.4 cents per share fully franked
- Dividend value set at 82% of Soul Patts’ final dividend
- Dividend payable regardless of merger completion
- Key dates – ex-dividend 21 August, payment 5 September
- Merger involves two inter-conditional schemes of arrangement
Dividend Announcement in Context
Brickworks Limited (ASX, BKW), a stalwart of the Australian building materials sector, has declared a fully franked final dividend of 48.4 cents per share for the financial year ended 31 July 2025. This announcement comes amid ongoing strategic developments, notably a proposed merger with Washington H. Soul Pattinson and Company Limited (Soul Patts), a diversified investment house and fellow ASX100 company.
Dividend Linked to Soul Patts’ Payout
The dividend amount is directly linked to Soul Patts’ own final dividend for the same financial year, set at 82% of whatever Soul Patts declares. This linkage is a condition of the Combination Deed underpinning the merger proposal, which involves two separate but inter-conditional schemes of arrangement, one for Brickworks shareholders and one for Soul Patts shareholders. Importantly, Brickworks has committed to paying this dividend irrespective of whether the merger proceeds, providing shareholders with certainty on returns.
Key Dates and Shareholder Impact
Investors should note the critical dates associated with this dividend, the ex-dividend date is set for 21 August 2025, with the record date on 22 August and payment scheduled for 5 September. This timeline ensures shareholders on record will receive the dividend, which continues Brickworks’ impressive track record of consistent dividend payments since its ASX listing in 1962.
Strategic Implications of the Merger
The proposed merger with Soul Patts represents a significant strategic move for Brickworks, potentially combining two diversified portfolios with complementary assets. Brickworks’ operations span Australian and North American building products, industrial property, and investments, while Soul Patts brings a broad investment portfolio and a history of delivering stable cash dividends. The merger could enhance scale, diversification, and shareholder value, but it remains subject to shareholder and regulatory approvals.
Looking Ahead
While the dividend announcement offers immediate clarity on shareholder returns, the broader market will be watching closely for updates on the merger’s progress and Soul Patts’ dividend declaration. The linkage of dividends underscores the intertwined futures of these two companies, making this a pivotal moment for investors in both entities.
Bottom Line?
Brickworks’ dividend commitment offers stability amid merger uncertainty, setting the stage for a defining corporate chapter.
Questions in the middle?
- Will Soul Patts declare a final dividend that sustains or exceeds expectations?
- How will the market react if the merger does not proceed as planned?
- What operational synergies or challenges might emerge post-merger?
