FBU - Fletcher Building

[Balance]

https://www.nzx.com/announcements/324803

Interesting move by FBU - $300m takeover offer of STU.

Guess the company is starting to think beyond asset sales and restructuring to growth again?

[Scrunch]

https://www.nzx.com/announcements/324803

Interesting move by FBU - $300m takeover offer of STU.

Guess the company is starting to think beyond asset sales and restructuring to growth again?

And also interesting that there is no sharemarket announcement from FBU (yet), just the STU side.

[Balance]

And also interesting that there is no sharemarket announcement from FBU (yet), just the STU side.

Next move is FBU and I believe FBU will increase its offer to $2.00

First offer is never last offer so $2 offer is on imo.

The way to assess this is that FBU can debt fund itself at less than 5% pa so even if FBU pays $2 per share ($330m), a takeover of STU will be earnings positive : $25m EBIT less $15m interest = $10m additional EBIT for FBU

$330m @ 4.5% pa = $15m interest or at 5% = 16.5m

Plus all the benefits from the lovely synergies and rationalization to come!