Gib crisis: Shareholders Association, $35m investor to meet chairman, CEO

Sam Stubbs of Simplicity. Photo / Doug Sherring

The Shareholders Association, and Fletcher Building investors with a $35 million stake, plan to meet the chief executive and chairman to discuss the Gib supply crisis on Friday.

Sam Stubbs of Simplicity Living said he plans a "frank, positive discussion" about how the company is looking after shareholders in the midst of the shortage.

A meeting with Fletcher chief executive Ross Taylor and chairman Bruce Hassall is planned.

"Default KiwiSaver provider Simplicity and the NZ Shareholders Association are meeting with the Fletcher Building chair and CEO this week, to discuss the Gib supply crisis," said a statement from Stubbs, association chief executive Oliver Mander and Shane Brealey, also of Simplicity.

"Simplicity owns $35m of Fletcher Building shares on behalf of its members, representing 0.8 per cent of issued shares," the statement said.

Last week Simplicity cancelled all contracts to buy Gib for its first 550 affordable homes in Auckland.

It offered to share details on how to import high-quality substitutes and has already received more than 60 inquiries from developers and builders.

They range from New Zealand's biggest group home builders to family-run developers, all over New Zealand.

"The number of inquiries in such a short time confirms that this is a nationwide crisis," Brealey said.

The association is also attending the meeting, given its long-standing concerns regarding the governance of Fletcher Building.

"We're concerned about the political and reputational impacts caused by the Gib supply issue on the sustainability of shareholder returns," said association chief executive Oliver Mander.

Stubbs said he hoped the meeting would be open and constructive.

"As a customer of Fletcher Building, we have voted with our feet and cancelled all future Gib orders and as a shareholder, we want to understand how they can better deliver for all stakeholders," he said.

The meeting is scheduled for this Friday.

Taylor said the company understood people's views.

Fletcher has a three-pronged strategy to ease the crisis: running its mills 24/7, working with merchants to create a fair distribution of supply, and opening a new $400m plant at Tauriko, Tauranga.