By IRENE CHAPPLE
Like any good sales pitch, it closed with a purchase.
It left the salespeople - the Fletcher Building board - practically purring.
Shareholders gathered in a Sheraton Hotel conference room for Fletcher Building's annual meeting yesterday had been hearing superlatives about the Australian-based Laminex Group for over an hour.
The
purchase, worth A$645 million ($733.4 million) plus $20 million ($22.7 million) payable on performance, was expected to be approved - but even so, a sugary tone was adopted.
At one point a presentation about Laminex - snaffled from the company's induction package for new employees - was presented to the assembled shareholders.
Cafe-style music boomed through the room as two screens were filled with happy people, smiley faces and goodness of Laminex, eased by the honeyed Australian voiceover.
Then Ralph Waters, chief executive officer and architect of the company's turnaround from last year's $272 million loss to $93 million solid profit, returned to the microphone.
His measured tones knocked out the same message.
"I encourage you strongly to vote in favour of [the purchase]," he said. "As it will be a further important step on top of strong underlying performance, in making Fletcher Building one of New Zealand's most successful companies."
The glory was spoiled somewhat by a question from the floor: "If Laminex is so great," asked one shareholder, "why is it for sale?"
The explanation was logical: Laminex is owned by a private equity fund out of the United Kingdom. It has been owned for five years and now, for investors to get their money out it, Laminex, was for sale.
Indeed, the company was intended for listing, said Waters, and Fletcher Building stepped in on the day Laminex's prospectus was being issued to make an offer.
"We are," Waters reminded shareholders, "very lucky".
After such build-up the result was almost inevitable. And it took just a couple of minutes for votes to be counted.
All resolutions were passed - Sir Dryden Spring and Kerrin Vautier were voted back in as directors, the reissue and new issue of capital notes were approved, and Laminex was officially bought.
