FBU
19/08/2015 10:38
ASSET
PRICE SENSITIVE
REL: 1038 HRS Fletcher Building Limited
ASSET: FBU: Fletcher Building to sell Rocla Quarry Products business
Fletcher Building to sell Rocla Quarry Products business to Hanson
Construction Materials.
Auckland - 19th August 2015
Fletcher Building Limited today announced it has entered into a conditional
agreement to sell the operations of Rocla Quarry Products ("RQP") to Hanson
Construction Materials Pty Limited ("Hanson") in a transaction valued at
approximately A$203 million. The sale follows a competitive tender process
for the business.
Fletcher Building will continue to own and operate RQP until completion of
the transaction, which is expected to be by the end of January 2016.
The transaction is conditional upon a number of matters, including clearance
from Australian Competition and Consumer Commission. Upon completion,
Fletcher Building expects to record a pre-tax profit of approximately A$100
million, reflecting the gain on sale of assets, partly offset by transaction
costs and adjustments to asset carrying values.
Fletcher Building Chief Executive Officer Mark Adamson said that the sale of
Rocla Quarry Products underlines Fletcher Building's commitment to deliver
improved shareholder value through active management of its portfolio.
"Rocla Quarry Products is a great business with a proud heritage, but it is
not a strategic part of our Australian portfolio. Given its quarry positions
around Australia, it naturally has a higher value to an integrated cement and
concrete operator than as a stand-alone business", Mr Adamson said.
The transaction does not affect the ownership of Fletcher Building's Rocla
Pipes & Concrete Products or Winstone Aggregates businesses, which remain
core elements of the Fletcher Building portfolio.
Credit Suisse and First NZ Capital are acting as financial advisors to
Fletcher Building, Ashurst is acting as legal advisor.
Further details of the transaction are outlined in the Appendix.
For further information contact:
Philip King
Group General Manager,
Investor Relations & Capital Markets
Phone: + 64 9 525 9043
Mobile: + 64 27 444 0203
End CA:00268665 For:FBU Type:ASSET Time:2015-08-19 10:38:20
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