Shareholders approve F&P split

Voting at the company's AGM, shareholders supported plans for the company to break into a Healthcare division and an Appliance division, which will also encompass its finance arm.

The plans, first unveiled last December, will see shareholders reap a cash payment of between 45 cents and 71 cents for every F&P share they own. They will also receive 0.528 Healthcare shares and 0.55 Appliances shares for every share they own.

The amount of the cash payment will depend on the price the company gets for floating 18% of the Healthcare business in the US, due to be listed on the Nasdaq.

Following the separation of the two business, F&P shareholders will directly own 62% of Healthcare shares while 18% will be in the hands of US investors and another 20% will be owned by the Appliances business.

Although much of the focus for the split has been on the extremely profitable Healthcare business, the company's CEO, Gary Paykel, told shareholders at Monday's meeting that the Appliances division has had a strong first six months.

"They have continued to increase revenue while focusing on significantly lowering their cost base following last year's restructuring into a single focused business unit."

However Mr Paykel admits that sales have been variable in key markets, reflecting changing economic conditions and consumer confidence as the year progressed.

"In Australia, the pending election has slowed all retail sales. After a strong start to the financial year, we were not immune to the general slowdown.

"Our market shares, however, are still strong despite the increased competition, particularly in Korea."

Mr Paykel says the US was doing particularly well until the recent events while in New Zealand the strength in the rural economy has not immediately flowed to the main cities, particularly Auckland.

"Our successful application for dumping duties has eased some price pressure in the New Zealand market, but the market remains very competitive."

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