"Obviously Fletchers sees a lot of value in our business and its future potential as the benefits of our turn-around strategy start to become clear… as do we," Steel and Tube chair Susan Paterson said in a statement.
Steel and Tube recently reaffirmed its 2019 guidance of earnings before interest and tax of $25 million on the back of the continuing positive progress being made under the company's "striving for Excellence" strategy.
"The company has a clear focus on growth and improving financial performance as it positions itself as New Zealand's leading supplier of steel products," Paterson said.
"While the market remains highly competitive, Steel & Tube continues to win new customers, sign large contracts, increase efficiencies and reduce costs," she said.
Steel & Tube's went through a successful capital raising early this year.
"The board and Management are confident in the improving performance of the company, and remain focused on providing high-quality steel solutions and products and delivering value for employees, customers and shareholders," she said.
Fletcher Building's shares last traded at $6.56.
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