Fletcher Building has announced a halt to trading on its shares as it looks to raise $700 million of new capital.
In August it announced a group net loss after tax of $277 million, and has seen its chief executive Ross Taylor and chairperson Bruce Hassall both step down this year.
In a statement on the NZX this morning, a Fletcher spokesperson said the company had requested a trading halt from before the commencement of trading today.
A message on the NZX confirmed: “NZ RegCo has approved a trading halt application from Fletcher Building Limited (FBU).
“Trading in FBU equity shares was halted prior to market pre-open today.”
It will be lifted on Wednesday morning – or sooner if the company announces “completion of the placement and institutional offer described below”.
“Fletcher Building is proposing to raise approximately NZ$700 million of new capital by way of an approximately NZ$282 million placement (Placement) to be conducted by Jarden Securities Limited (Lead Manager), together with an approximately NZ$418 million accelerated non-renounceable entitlement offer (ANREO0M), it said in a statement to the NZX.
“The Placement and the ANREO are to be fully underwritten by Jarden Partners Limited (together with the Lead Manager, Jarden).”
“We believe the equity raising bolsters our financial position, assisting us to better endure near-term market headwinds,” incoming group managing director and chief executive Andrew Reding said.
“With a strengthened balance sheet, the Company can focus on executing key operational initiatives in preparation for a market recovery.”
