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Fisher & Paykel to split

By Phil Boeyen, ShareChat Business News Editor

Tuesday 19th December 2000

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Appliance and healthcare manufacturer Fisher & Paykel (NZSE: FAP) is planning to separate the two divisions into stand-alone companies and seek a Nasdaq listing for its healthcare business.

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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