Fletcher Building books $85 mln profit from sale of Rocla Quarry Products

Friday 29th January 2016

Fletcher Building has completed the A$150 million sale of Rocla Quarry Products assets to Hanson Construction Materials following clearance from the Australian Competition Commission and the Foreign Investment Review Board.

An additional sale to other parties of the joint venture quarry assets and other Rocla Quarry assets outside of the Hanson deal has netted a further A$44 million, taking the total consideration received to A$194 million ($212 million).

Fletcher Building said completion of the sale will result in a profit of about $85 million, reflecting the gain on sale of the Rocla Quarry Assets, offset by transaction costs and adjustments to asset carrying values.

The profit will be booked in the 2016 financial year ending June 30.

The sale was announced in August when the building products and construction company reported its full-year operating earnings of $653 million for the 2015 financial year.

The deal doesn’t affect the ownership of Rocla Pipes & Concrete Products and GBCWinstones which remain a core part of Fletcher’s portfolio.

Fletcher Building shares fell 0.7 percent to $6.86 and have dropped 6.8 percent so far this year.

BusinessDesk.co.nz

Comments from our readers

No comments yet