Fisher & Paykel Plans to Separate Into Two Companies

Feb 1, 2001 12:00 PM, Richard Park

Auckland, New Zealand

Fisher & Paykel Industries plans to split into two companies: Fisher & Paykel Healthcare and an as-yet unnamed holding company that would incorporate the appliance and finance businesses.

"Your board will be recommending the separation as a further step in the process that we instigated in February 1998 to improve shareholder value," company chairman Colin Maiden stated in a recent letter to shareholders. "Since April 2000, the process has included an intensive review by the board of the options available to us to achieve long-term shareholder value for our shareholders."

According to the letter, the board hopes to increase the value of Fisher & Paykel Healthcare by offering about 20 percent of the company to U.S. investors through a public offering. The company also plans to apply for listing on the Nasdaq.

The holding company would own approximately 20 percent of F&P Healthcare, while F&P shareholders on record at the time of the separation would continue to own the majority of F&P Healthcare.

Implementation of the plan is subject to court and shareholder approval. Officials said they expect the separation to be completed during the latter part of 2001 or early in 2002.