By STAFF REPORTER and AGENCIES
Fisher & Paykel shareholders are in line for a cash payment of between 44c and 70c a share under the long awaited split and partial public offering of its healthcare division.
The Auckland-based manufacturer will offer 18 per cent of its healthcare unit to US investors as part of a split of that business from the home appliance division.
But yesterday's announcement of a timetable for the split failed to excite investors.
Fisher and Paykel shares closed down 45c, or 3.4 per cent, at $12.70 yesterday - well off their $14.60 record high set last month, but significantly up on their $7.45 level of 12 months ago.
The separation plan was "fair" to existing shareholders, an appraisal report by Deloitte Touche Tohmatsu said.
Fisher & Paykel, one of the top-performing New Zealand stocks this year, is spinning off its home appliance unit because its slower growth is prompting investors to mark down the value of the expanding healthcare business.
Under the plan, the healthcare unit - to be called Fisher & Paykel Healthcare Corporation - will be listed on the New Zealand Stock Exchange and the US Nasdaq exchange.
The remainder of the group, Fisher & Paykel Appliances Holdings, will be listed on the NZSE and will hold just under 20 per cent of FPHC's shares.
The separation "will make it easier for the market to appropriately value each business," the company said.
"The board believes the separation arrangement will result in increased value for shareholders and is in the best interests of the shareholders and the company as a whole."
As part of the separation, existing shareholders will receive 528 shares in the healthcare unit and 550 shares in the appliance unit for every 1000 Fisher & Paykel shares.
They will also receive a cash payment related to a "value gap" between the combined company and its higher value after the split.
The size of the payment will depend on the price obtained for the shares sold under the US offer. If that price is within the indicative range set out in the Deloitte report it would be between $447 and $706 for every 1000 shares.
Fisher & Paykel chief executive Gary Paykel will become chairman of the healthcare business and executive chairman of the appliance business.
Michael Daniell, who heads the healthcare unit, will become chief executive of that business.
Fisher & Paykel's board has recommended shareholders vote in favour of the separation.
The plan has received preliminary High Court approval and will be voted on by shareholders on October 8. A final High Court hearing to approve the separation is expected on October 23.
Fisher & Paykel Healthcare will list its American depositary receipts on the Nasdaq on November 13. Each depositary receipt will comprise four ordinary shares.
The company yesterday reported its healthcare unit made an operating profit of $21.5 million in the first quarter ended June 30, on operating revenue of $52.9 million.
Chairman Sir Colin Maiden said the unit "performed strongly" compared with the same period last year, but he did not give comparisons.
The company is monitoring the aftermath of this week's terrorist attacks in the US and any impact this may have on the separation process.
"In the meantime, the company intends to continue with the separation process as planned," Sir Colin said.
Pay day for F&P shareholders
AdvertisementAdvertise with NZME.