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The Washington H Soul Pattinson logo is seen displayed on a smartphone screen.
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Australian investment company Washington H Soul Pattinson will buy out its building products affiliate Brickworks in a deal valuing the latter at A$4.62 billion ($3 billion), the companies said on Monday.
The deal would merge the companies, and a new Australia-listed firm would be established with an expected valuation of A$14 billion ($9 billion).
Stockholders in Washington H Soul Pattinson would own 72% of the newly formed company. Holders of Brickworks would own 19% while the remainder would be offered to new shareholders.
Soul Patts has a 43% shareholding in Brickworks and Brickworks owns 26% of Soul Patts.
The new entity has received commitments worth A$550 million in shares, fully underwritten by Aitken Mount Capital.
Soul Patts is offering an implied value of A$30.28 for every Brickworks share, a 10.1% premium to the stock's last close.
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