Fletcher Building extends Crane offer

Fletcher Building chief executive Jonathon Ling File photo

Fletcher Building, New Zealand's biggest listed company, has extended its takeover offer for pipemaker Crane Group, saying it expects to pick up shares from some institutional investors, bringing its total holding to 70.4 per cent.

The Auckland-based company pushed out the close of the offer until March 31 from March 25, it said in a statement today.

The extension would allow Tyndall Investments to accept the offer in relation to its 7.7 per cent holding of Crane.

In addition, some 7.6 per cent of Crane's stock is in the process of being accepted through Fletcher's Institutional Acceptance Facility, it said.

Fletcher waived a requirement to gain full control of takeover target Crane Group and declared its offer unconditional on Friday.

Its controlling stake means it can appoint Fletcher executives David Worley and Paul Zuckerman to replace existing directors. The A$10.07 a share cash-and-scrip offer includes a 50 Australian cents special dividend from the target company.

The Fletcher bid won the approval of Crane's directors after it was sweetened to A$3.50 cash and one Fletcher share for every Crane share.

Fletcher shares fell 1 per cent to $8.67 on the NZX today and were unchanged at A$6.38 on the ASX. Crane rose 0.1 per cent to A$9.85.