Future spin-off boosts F&P price

Fisher & Paykel's star continues to shine, the company's share price yesterday hitting an all-time high of $14.60 amid anticipation of the spin-off of the high-growth healthcare unit this year.

Although it ended the session a touch softer at $14.50, the stock has more than doubled in price since last November, when plans to split the firm into separate healthcare and appliance companies were announced.

Following the separation - set for completion by year-end - 20 per cent of the healthcare division will be listed on the US Nasdaq index.

Several analysts have said the stock could justify valuations in excess of $15, taking into account the valuations of similar overseas healthcare firms such as ResMed.

Both F&P and ResMed make medical equipment used for treating and diagnosing sleep-disordered breathing.

F&P chief executive Gary Paykel yesterday confirmed that details of the planned separation would be supplied to shareholders next month.

He said initial orders from the High Court setting the procedure for the separation were received on Monday and further regulatory approvals were being obtained.

A shareholder meeting to approve the separation is expected in the second half of next month or in October. A 75 per cent approval vote is required.