Fisher & Paykel pushes ahead with split and Nasdaq listing

By Deborah Hill Cone

Friday 14th September 2001

GOING AHEAD: Shareholders will meet on October 8

Listed appliance and healthcare company Fisher & Paykel yesterday revealed details of its plan to split the company - pushing ahead despite admitting the US terror attacks could have an impact.

Chairman Sir Colin Maiden said the company was monitoring the tragic events which had occurred in the US and any impact they may have on the separation process.

"In the meantime the company intends to continue with the separation process as planned," Sir Colin said.

Under the deal shareholders may receive between $447 and $706 in cash for each 1000 shares but that amount depends on the success of an IPO on the Nasdaq of 18% of its jewel-in-the-crown healthcare division.

For every 1000 shares current F&P shareholders own they will get 528 healthcare company and 550 appliance company shares.

The amount of cash received by F&P shareholders under the separation agreement is dependent on the price obtained for the shares sold under the US Healthcare offer, F&P said.

"For example, if the US Healthcare offer results in a sale price for F&P Healthcare Corporation shares within the indicative public offer price range set out in Deloitte Touche Tohmatsu's independent report... then for every 1000 shares held this cash payment would be between $447 and $706," F&P said.

F&P said the healthcare division made an operating profit of $21.5million in the June quarter on revenue of $52.9 million.

F&P shareholders are to meet on October 8 to vote on the separation proposal, with a 75% approval required.

The company said the Nasdaq listing of 18% of F&P Healthcare would encourage ongoing investment of US investors in the healthcare business as well as increased visibility.

The company also unveiled the lineup of its two new boards of directors, both to be chaired by executive chairman Gary Paykel.

F&P is currently chaired by former University of Auckland vice chancellor Sir Colin Maiden. Sir Colin will take a position on the board of the healthcare division.

The board of the appliance company will be Mr Paykel, John Bongard (executive director), John Gilks (deputy chairman), Norman Geary, Lindsay Gillanders, Peter Lucas, Ralph Waters, Bridget Wickham and Julian Williams.

The healthcare boar, also to be chaired by Mr Paykel, will consist of managing director and chief executive Michael Daniell, Mike Smith (deputy chairman), Adrienne Clarke, Nigel Evans, Lindsay Gillanders and Sir Colin Maiden.

F&P shares were trading at $13.15 yesterday, off their $14.60 record high set last month in anticipation of the benefits of the split.

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