Naming of top roles suggests all go after brief market turmoil.

Last month's sharemarket turmoil hasn't prompted the private equity owners of Tegel Foods to chicken out of plans to take the poultry business public.

By the sound of things it's full steam ahead with the deal, which could raise as much as $500 million, according to a market source.

Stock Takes understands Tegel has secured high-profile businessmen James Ogden, David Jackson and George Adams as independent directors as the firm gears up for a transtasman sharemarket listing either next month or in April.

Ogden, a director of NZX-listed firms including Summerset Holdings and The Warehouse Group, is expected to become chairman.


Jackson's current directorships include seats on the Fonterra and Nuplex Industries boards. Adams is a former managing director of Coca-Cola Amatil NZ and immediate past chairman of the New Zealand Food & Grocery Council.

The float is expected to value Tegel at around $800 million. Asian private equity firm Affinity Equity Partners purchased the business for $605 million from Australia's Pacific Equity Partners in 2011.

Dick Smith hangover?

The collapse of Dick Smith probably wasn't the most helpful development for Affinity and its plans for Tegel.

Private equity-backed floats attract an extra dollop of scepticism at the best of times, but the electronics seller's troubles have sparked much debate about the complex financial techniques - often using hefty doses of debt - such investors employ when preparing businesses for sale.

Australian private equity firm Anchorage Capital bought Dick Smith for around A$100 million in 2012 before floating it on the ASX the following year for more than five times that value.

"Given recent listings from private equity, the Tegel prospectus is likely to come under increased scrutiny from some investors," said Harbour Asset Management portfolio manager Shane Solly.

Milford Asset Management's Brian Gaynor has suggested the Dick Smith receivership, which began on January 5, could weigh on the pricing of Tegel's share offering.

However, another market source said the poultry firm was a more dependable business than Dick Smith, with less earnings volatility.

"This is a manufacturing, consumer foods business that's been growing pretty nicely under two different private equity owners."

Tegel's parent, Ross Group Holdings, reported earnings before interest and tax of $45.8 million from revenue of almost $563 million in the year to April 2015.

The float is being run by Goldman Sachs and Deutsche Craigs.

Banker benefit

First NZ Capital's call for Fletcher Building to consider a "full break-up" of its business drew tentative support from fund managers this week.

But would such a move deliver increased value to shareholders, or mostly benefit investment bankers and lawyers?

Shareholders Association associate director Des Hunt reckons it would be the latter outcome.

"I certainly don't support what the merchant bankers are recommending," Hunt told Stock Takes. "You've got to give [Sir] Ralph [Norris, Fletcher chairman] the opportunity to put the company in the right direction, which I think he's doing."

First NZ's analysis found Fletcher shares were worth over 20 per cent more on a sum-of-parts basis than their current market price.

"A full break-up ... should be given serious consideration," the brokerage said in a note published last week, before Fletcher's Tuesday announcement of a $315 million acquisition of Higgins Group, New Zealand's third-largest road construction and maintenance firm, and a reorganisation of its divisional and executive structure.

Fletcher shares closed down 1c at $7.13 last night.

Sky investors urged to hold tight

Sky Television's had a disappointing start to 2016, but research provider Morningstar is recommending investors sit tight on their holdings.

Sports fans have been left high and dry following repeated failures of the Sky Go online service, which caused thousands of customers to miss big events at the weekend and again on Wednesday.

Sky also had a technical fault with its satellite channels last month and has been copping negative feedback from some customers about its $120 million My Sky decoder upgrade.

These issues, of course, fade into insignificance when you consider the long-term challenge the company faces as a result of the rise of online streaming rivals such as Netflix.

Morningstar has a hold recommendation on Sky TV, with a $5 fair value estimate on the stock, which has slipped 22 per cent over the past year to close at $4.54 last night.