Fletcher taking control of Crane board

Peter Crane. Photo / Supplied

Fletcher Building says Peter Crane, a Crane Group shareholder descended from the founding family, has reluctantly accepted its bid for the Australian plumbing supplies and plastic pipelines maker, and the deal is unconditional.

Fletcher Building earlier said it had dropped the all-or-nothing condition on its bid and was moving to take control of the board, having amassed a 57 per cent holding from the ongoing takeover.

The New Zealand-based building firm yesterday waived a 90 per cent minimum acceptance condition together with all other outstanding conditions and declared the bid unconditional.

It said it intended to appoint a majority of Fletcher Building nominee directors to the Crane board as soon as possible.

Under a takeover bid implementation agreement Fletcher Building has the right to appoint two directors to replace existing directors and it can appoint a third director to replace an existing director when it paid shareholders who accepted as at March 17. The board has six members.

Peter Crane, who has a 1.5 per cent stake, has said shareholders should reject the bid but Fletcher Building said Crane had made the decision to accept the company's offer. "I am a reluctant seller, but it is no longer realistic to believe that the Crane Group can remain an independent company," Fletcher Building quoted Crane as saying.

The bid is open until March 25, and Fletcher Building intended to extend the offer closing date to March 31.

The new board appointees are David Worley, chief executive of The Laminex Group, and Paul Zuckerman, chief executive of Fletcher Building's steel division.

- NZPA