By Phil Boeyen, ShareChat Business News Editor
Tuesday 19th December 2000
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The separation will result in two listed technology-based companies with separate funding and balance sheets.
F&P Healthcare will remain listed on the NZSE but the company says in order to increase the value of the business it will offer around 20% to US investors through a public offering there and also apply for a Nasdaq listing.
After the separation the second company, currently known as Newco, will own 100% of F&P Appliances and F&P Finance as well as around 20% of the Healthcare company, and will seek a separate listing on the NZSE. Both companies will also seek a secondary listing on the Australian Stock Exchange.
Registered F&P shareholders at the time of the separation will own the majority of both companies and will also receive a cash payment from some of the proceeds from the sale of Healthcare shares in the US offering.
The F&P board says splitting its business into two stand-alone companies is the most effective way for shareholders to obtain long term value for their investment in the company.
The restructuring is subject to court and shareholder approval.
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