Sharechat Logo

Fletcher faces $11 mln charge on sale of Hudson distribution unit

Monday 16th June 2014

Text too small?

Fletcher Building, New Zealand's largest listed company, faces an $11 million charge on the sale of its construction materials distribution business Hudson Building Supplies for $20 million to HTH Stores.

A conditional agreement to sell the Australian trade-focused timber and building supplies distributor has been reached with HTH, which is part of the Woolworths home improvement division, the Auckland-based company said in a statement. Fletcher expects to record an $11 million expense in the financial year ending June 30, "reflecting the difference between sale proceeds and asset carrying values together with transaction costs," it said.

Fletcher acquired Hudson when it took over the Crane Group in 2011, but has since determined the business is "not core to its future operations". Earlier this year the company described Australian conditions, which account for half its earnings, as "soft" amid sluggish economic growth across the Tasman impacts on building intentions and a high New Zealand dollar crimps export returns.

The sale needs Australian Competition and Consumer Commission clearance, which may take up to six months to complete.

Fletcher's NZX-listed shares fell 0.9 percent to a four-month low of $8.89.

 

 

 

 

BusinessDesk.co.nz

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar eases as market eyes pending GDP data
Evolve shareholders demand answers
Strong tourism, low rates keep lid on NZ current account deficit
Refining NZ margins jump to 18-month high
Goodman opts for underwritten $150m placement to raise capital
Kathmandu shares rise 9.3% on strong FY result, solid US performance
FMA seeks greater powers from the government
Goodman opts for underwritten $150m placement to raise capital
NZ dollar opens higher as dairy prices lift, oil eases
Napster's Sean Parker yet to seek OIO approval for Weta Digital stake

IRG See IRG research reports