F&P companies ready to roll

By Phil Boeyen, ShareChat Business News Editor

Tuesday 13th November 2001

American Depositary Shares in Fisher & Paykel Healthcare (NZSE: FPH) have reached the top end of the listing range as the company prepares for standalone trading on the NZSE.

The company has reported it achieved a price of US$18 per ADS in its US market offer from a predicted range of between US$16-18 per share.

Each ADS represents four FPH shares, indicating value of around NZ$10.65 per Healthcare share.

Both Healthcare and F&P Appliances (NZSE: FPA) shares are due to begin trading when the NZSE opens at 9am Wednesday morning. The Healthcare ADSs will also trade on the Nasdaq under the symbol FPHC beginning Wednesday morning New Zealand time.

The separation of Fisher & Paykel into two businesses signals the start of a new era for one of New Zealand's best known brands. The company embarked on the project because it considered the market was not affording its Healthcare business the value it deserved.

Under the separation plan shareholders who held F&P stock at the close of business last Friday will receive for every 1,000 shares a cash payment of $697, 528 Healthcare shares and 550 Appliances shares.

Market speculation has been that the Appliances shares could face an early sell-off in favour of Healthcare, pushing down the Appliances price.

However Appliances put on a reasonable showing when the company revealed its recent half-year result which is likely to encourage shareholders to hang on for a while.

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