Fletcher Building (ASX:FBU) has announced it is exploring potential divestment options for parts of its construction unit. This includes Higgins, Brian Perry Civil, and Fletcher Construction Major Projects. Fletcher Building is a large New Zealand-based company involved in construction, building products, and distribution. It provides materials and services for residential and commercial buildings and infrastructure projects.
The decision follows inbound interest and the completion of a strategic review, according to a market update from the company. Fletcher Building has appointed financial advisors to assist in evaluating these options. However, the company emphasised that no definitive decision to sell has been made at this stage.
Chief executive Andrew Reding noted the strong recent performance of the construction units and their significance to New Zealand’s infrastructure prospects as the catalyst for external interest. This interest led to the decision to formally assess market appetite. “Given the quality and strong recent performance of our construction businesses, and the role they will play in New Zealand’s growing infrastructure pipeline, we were not surprised to receive inbound interest,” Reding stated.
Reding added, “We will carefully consider the value of any options presented before deciding whether to move ahead.” Fletcher Building indicated it will provide further updates as and when necessary.
