Harvey Norman reported to be considering separate NZ listing

By NZPA

Monday 17th February 2003

Furniture and appliances company Harvey Norman is considering spinning off its New Zealand operations into a separately listed company, according to an Australian newspaper report.

The Australian Financial Review quotes company chairman Gerry Harvey as saying capital raised from such a spin-off would fund unspecified offshore expansion plans.

"If it does happen, Harvey Norman would be a majority shareholder in it but it would operate as a separately listed company."

Harvey Norman's New Zealand shares are rarely traded but the company still pays stock exchange fees.

Neil Berryman, Harvey Norman's New Zealand finance and administration manager, told NZPA today he could not comment but confirmed Harvey Norman was looking at opening more stores in New Zealand in response to its strong domestic economy.

The company has 12 stores in New Zealand and has a target of opening eight more.

Harvey Norman is expected to post a strong interim profit result on March 17. Its first half sales were up 13.8 percent in both Australia and New Zealand (excluding Singapore and Rebel Sport Ltd) totalled $A1.59 billion ($NZ1.72 billion) for the six months to December 31.

However, Harvey Norman's share price has been struggling at four-year lows on broker concern about its exposure to Australia's peaked housing cycle, its rapid expansion programme and a potential selldown from a large institutional shareholder.

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