Fletcher Building lifts bid for Crane

Monday 10th January 2011

Fletcher Building has slightly increased its offer price for ASX-listed, Sydney-based building and industrial products company Crane Group.

After discussions with Australia's securities commission and Crane, Fletcher Building is now offering one of its shares and $A3.47 in cash for each Crane share, a 4c increase per share.

Fletcher Building revised its offer to match the price it paid to some institutional shareholders for a 13.1% stake in Crane immediately before the announcement date.

The offer opens on Wednesday and closes on Friday February 2, unless extended.

The bid's implied value of $A9.35 represented a 28% premium to the Crane share price over the month before the offer's announcement, Fletcher Building said.

The bid was conditional on the acquisition of 90% of Crane shares.

Fletcher Building intended to operate ASX-listed Crane as a separate division within the larger group.

The Commerce Commission is expected to make a decision on whether to approve the offer later this month.

Crane operates more than 100 trade distribution outlets in New Zealand under the MasterTrade, Mico, Corys Electrical and Equipsafety brands.

Crane's Iplex business makes and distributes plastic pipeline systems on both sides of the Tasman.

Fletcher Building, which owns the PlaceMakers distribution business, believed the main area of competition concern was the manufacture and distribution of pipes and pipe fittings.

However, it said the two companies did not compete for all customer business within the market.

NZPA

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