BlackRock brings Fletcher Building stake back above substantial shareholder mark

Thursday 14th January 2016

BlackRock, the world’s largest investment manager, has tweaked its stake in Fletcher Building back above the 5 percent substantial shareholder mark again.

The US headquartered fund manager first became a substantial shareholder in the Auckland-based construction and building supplies firm through various related companies in March last year. It had built up the stake from November 2014, including purchases at between $8.04 and $8.97 per share.

Its latest move lifted its shareholding to 5 percent after a number of trades over the past two weeks see-sawed to just below and just above the substantial shareholding mark, according to notices lodged with the NZX.

Shares in Fletcher Building are currently trading at $6.74, down 0.9 percent today, and have dropped 7.5 percent so far this year. A consensus of analysts on Reuters rate the stock a 'hold' with a median price target of $8.30.

The construction company reported a 20 percent slide in annual profit in August to $270 million while operating earnings rose 5 percent to $653 million, the lower end of its guidance. At its November annual meeting Fletcher’s board forecast operating earnings for the 2016 financial year in the range of $650 million to $690 million, the same as its previous year forecast.

Meantime, New York-listed BlackRock’s Australian subsidiary lowered its stake in casino and hotel operator SkyCity Entertainment Group from 7 percent to 6 percent late last month.

The investment manager also reduced its substantial shareholding in Sky Network Television from 5.4 percent to just under 5 percent in August last year. Its other Kiwi holdings include a 6.3 percent stake in telco Spark New Zealand and 5 percent of mining company OceanaGold Corp.

BlackRock was founded in 1988 by a group of Wall St bankers including current chairman and chief executive Larry Fink. It has US$4.5 trillion of assets under management.

BusinessDesk.co.nz

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