F&P Appliances tipped to give details of cornerstone investor

Expectations are building that Fisher & Paykel Appliances is about to announce details of its capital raising, including the identity of a new cornerstone investor.

The company said last month it was considering a range of alternatives to strengthen its balance sheet including an equity raising involving "a strategic cornerstone investor" and property sales at East Tamaki, where its head office is located, and its Cleveland manufacturing facility in Queensland.

A market source told the Business Herald he believed an announcement was imminent following a series of meetings he understood Fisher & Paykel's management team and advisers had been attending in Australia.

Chinese appliance manufacturer Haier, which has a Sydney office, continues to crop up in market chatter as a strong contender.

Fisher & Paykel refused to comment, referring the Business Herald to a statement made by Paul Brockett, head of investor relations, last month.

"The company is working with advisers to assist it on these matters and is in discussions with parties in relation to both the land sales and the equity raising."

Although the company's directors earlier said they expected to provide an update early this month, Brockett's more recent statement says unless there are "material developments" before the end of the month an update is unlikely before then.

F&P Appliances shares fell 2c to 51c yesterday.