“Troubled”, “cash-strapped” and “under pressure” Fletcher Building won’t comment on Australian media reports that it has got out the “begging bowl” for a $700 million “emergency” capital raise.
Both the Australian Financial Review (AFR) and The Australian are reporting the struggling dual-listed building giant’s investment bank Jarden is tapping investors for cash.
A Fletcher Building spokesperson said on Sunday the company wouldn’t be commenting on whether it was contacting investors to seek support for a raise, which was reported as being a rights issue and placement set to be announced on Monday morning.
A source told BusinessDesk they were not sure where the idea an emergency raise was required had come from.
While Fletcher’s balance sheet was not as strong as it could be, the firm still had headroom in its banking covenants, they said.
