Fisher and Paykel appliances to sell healthcare stake

Iconic appliance whiteware manufacturer Fisher & Paykel Appliances today announced it was selling its 19.3 per cent stake in sister company Fisher & Paykel Healthcare.

Both companies were placed in a trading halt for the remainder of the day early this afternoon after the announcement.

Fisher & Paykel Appliances said the sale of its stake in Healthcare would be done by way of a bookbuild to institutional investors.

The sale would allow it to focus capital resources on its core appliance and finance businesses, the company said in a statement to the NZX.

Proceeds from the sale would be used to reduce debt incurred by its purchase last year of Farmers Finance.

Excess funds would be returned to shareholders by way of a special dividend and an on-market share buy-back, worth up to $140 million.

The two companies were created by the split of Fisher & Paykel Industries in November 2001. Fisher & Paykel Healthcare makes neo-natal warmers, respiratory humidifiers and products to treat sleep disorders.

Shares in F&P Healthcare were up 5c to $12.35 before the trading halt while F&P Appliances shares were up 3c to $3.72.

- NZPA