This article is from the Australian Property Journal archive
CONSTRUCTION products manufacturer and home builder Fletcher Building is selling half of its business in Fiji for NZ$20 million.
Fletcher will sell a 50% stake in its Fiji construction business to the Fiji National Provident Fund and Fijian Holdings Limited.
But the exit will hit the company, which is expected to record a non-cash impairment of approximately NZ$15 million on the business.
Acting CEO Nick Traber said buyers are two strong local partners with whom they group has a long-standing relationship.
“We believe the partnership positions the business well to continue to play an important role in Fiji, focused on infrastructure development,” Traber said.
This sale comes after credit ratings agency Moody’s downgraded the company’s rating following Fletcher’s announcement that it was expecting lower earnings for FY24, with market conditions remaining weak across the company’s materials and distribution divisions.
Earlier in the year, the construction company put its plumbing and bathroom supplies business Tradelink up for sale – the deadline for non-indicative bids is the end of this week – as it swung to a first-half loss of $113 million.
