Fletcher Building announced that it will exit the Sims Pacific Metals joint venture, selling its 50 per cent share for NZ$42 million (AUD$38.4 million).
In a statement last week, the company said it had reached an agreement to share its stake in the joint venture to Sims Metals Management, with purchase price subject to a working capital adjustment, which will be finalised post acquisition.
Based on current estimates, Fletcher said total proceeds of the divestment are expected to be between NZ$55.4 million (AUD$50 million) and NZ$60 million (AUD$54.9 million).
Fletcher said the decision to exist the joint venture was made in line with the businesses strategy to divest non-core businesses and focus its steel division operations and manufacturing and distribution.
Sims Pacific Metals – New Zealand’s largest metal recycling company – was established in 1992 as a 50/50 joint venture between Fletcher Steel and Sims Metals Management.
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