Sharechat Logo

Fletcher Energy expects ups and downs in turbine investment

By Phil Boeyen, ShareChat Business News Editor

Saturday 1st July 2000

Text too small?
Kiwi investors are being advised to tread carefully over Fletcher Challenge Energy's investment in a newly listed Nasdaq stock.

With more than 8 million shares in Capstone Turbine Corporation, Fletcher Energy is the largest shareholder.

Capstone listed on the Nasdaq on Thursday and closed the day a shade under US$48, valuing the Fletcher holding at more than NZ$800M.

But the company says it is expecting some volatility in the Capstone price, and investors should be cautious.

Capstone Turbine Corporation is a Los Angeles based designer and manufacturer of micro-turbines.

Fletcher Energy made its first equity investment in Capstone in 1995, when it also secured the marketing rights to stationary applications outside the United States. The kiwi company recently sold those marketing rights back to Capstone and will receive US$11m from the proceeds of the IPO as final payment for the marketing rights.

Taking into account that payment, Fletcher Energy's communications director, Stephen Jones, says the company's net investment now stands at around US$5 million.

The company is restricted from selling its eight million plus shares for 12 months. FEG closed Friday up 25 cents at $6.95.

  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:

Fletcher vote still on
Legal action still possible in Fletcher Challenge insider case
Shell sweetens Commerce application for FEG
Deane rallies the troops at Fletcher AGM
More time please says Commerce Commission
Shell applies for Fletcher Energy again
Fletcher sells NZR stake for $34 million
Shell wants to work it out
Fletcher hopeful FEG sale still on
"Nope" says Commerce Commission to Shell