Fletcher Building to buy Amatek, issue new shares

Fletcher Building has agreed to buy Australian building products firm Amatek Holdings and will issue 20 million new shares to partly fund the purchase.

The shares would be issued via private placements to institutional investors, the company said in a statement to the Australian Stock Exchange.

The purchase would be made through Fletcher Building Australia, a wholly owned subsidiary of Fletcher Building.

Trading in Fletcher Building shares has been suspended on both the New Zealand and Australian stock exchanges. Trading was expected to resume on Thursday when the new shares had been issued.

Fletcher Building had earlier indicated it was interested in buying Amatek's subsidiary, Insulation Solutions. The Australian Competition and Consumer Commission (ACCC) gave the green light for that takeover early last month.

Amatek is owned by CVC Capital Partners, and its products and operations include insulation, concrete pipes, roofing and quarries.

Apart from Insulation Solutions, Amatek owns Rocla, which makes concrete pipes, and Stramit, a manufacturer of steel building products.

The buy would increase Fletcher Building's annual revenue by $700-$800 million.

Shares in Fletcher Building last traded yesterday at $7.07, having ranged between $4.08 and $7.43 over the past 12 months.

- NZPA