Fletcher Building could be eyeing up a joint venture to avoid a capital raising. Photo: RNZ / Cole Eastham-Farrelly
Market speculation about Fletcher Building's plans have gone into overdrive, as reports suggest the field is narrowing in the race to acquire its Tradelink business.
And the company could be eyeing up a joint venture to avoid a capital raising.
The Australian reported Fletcher was assessing a joint venture project involving its land bank in New Zealand that could see the company earn about $500 million, meaning it could avoid an equity raising.
It comes after Fletcher revealed it faced a $10-30 million hit to its earnings because of problems with supplying cement to its North Island customers.
The paper said it could sell half of its land bank - worth about $1 billion - to a developer, and suggested a possible joint venture could be developing more homes for Kāinga Ora.
It also reported three private equity firms had dropped out of the race to buy its Australian plumbing supplies business Tradelink, but it was moving ahead with other suitors - Metals Manufacturers and Mesh & Bar.
Metals Manufacturers is a US-owned company, while Mesh & Bar is a steel distributor based in Australia.
The Australian Financial Review also reported the two firms were the last standing in the race for Tradelink.
Fletcher announced the sale of Tradelink earlier this year following its half-year loss of $120m.
A spokesperson for Fletcher Building said the company did not comment on "market speculation".
