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Fisher & Paykel Appliances has yet to decide the fate of its dividend despite plans to ask investors to give it money through a capital raising.
The appliance manufacturer said on Monday it would look to raise funds from investors in a bid to reduce a debt level set to hit $570 million by the end of March.
The announcement came alongside a profit warning and plans to look for a cornerstone investor. But analysts have questioned the sense of asking investors to dig into their pockets for more money while being paid out a dividend.
"It doesn't make sense to be asking investors to cough up a $150 million only to pay them back $50 million," said Tyndall Investment Management's Ricky Ward. "They haven't talked about cutting the dividend."
Fisher & Paykel head of investor relations Paul Brockett said the board met monthly but any decision on the dividend was likely to be several months away.
In the year to March 31 2008, Fisher & Paykel paid out 18c per share in dividends. But in the first six months of the 2008-09 financial year the level dropped to 5c - down on the 9c paid in the same period of the previous year. If an extra 5c was paid that would equate to close to $30 million going back to shareholders for the year. Fisher & Paykel Appliances' share price closed down 7c yesterday at 65c.
