Fletcher Building has extended its takeover offer for Australia's Crane Group by 14 days while announcing that acceptances under the offer had crept up to 27.7 per cent of the company.
"We are confident of receiving the remaining regulatory clearances and extending the closing date to 11 March accommodates the
expected timing of these decisions," chief executive Jonathan Ling said in a statement.
Fletcher is offering one its shares and A$3.50 cash for each Crane share, valuing the proposal at A$10.07 a share when a Crane special dividend is included. The proposal is dependent on reaching 90 per cent of the target, which will extend Fletcher's footprint in Australia, especially in pipes and piping systems.
Australia is the key market for growth for Fletcher, which this week posted an 8 per cent gain in first-half profit on increased volumes sold across the Tasman.
Ling said trading conditions in Australia are expected to remain "relatively favourable" as demand is driven by the mining and resources sectors, making up for weaker housing and commercial work.
The Crane offer got clearance from the Australian Competition and Consumer Commission last week. Crane's directors are now supporting the proposal and chairman Leo Tutt and managing director Greg Sedgwick have indicated they would sell into the offer.
Fletcher's ASX-listed shares fell 0.2 per cent to A$6.28 today. The stock rose 0.4 per cent to $8.37 on the NZX. Crane last traded at A$9.50.
