New Zealand’s Carter Holt Harvey (CHH) has delayed a planned initial public offering (IPO) due to uncertainty about its timber business amid speculation part of the firm could be sold. Source: Reuters
CHH, which has a New Zealand retail building supplies chain and manufactures wood-based building products in both New Zealand and in Australia, said changed market conditions had caused uncertainty about the earnings outlook of its Australian timber business and it could not finalise forecasts.
“It is the right decision in the circumstances to exercise caution and pause,” CHH chief executive Prafull Kesha said in a statement.
He said until there was greater clarity, the IPO, which was being managed by Credit Suisse, First New Zealand Capital, Deutsche Craigs and Forsyth Barr, would be put on hold.
Graeme Hart controls CHH through his Rank Group.
The IPO, which was estimated to be worth up to $NZ1 billion ($712.90 million) by New Zealand media, was unveiled last month with Rank committing to retain a significant stake in CHH.
The stock was to be listed both in New Zealand and in Australia.
The Australian newspaper reported, though, that Australian retail giant Wesfarmers Ltd was considering making an offer for CHH’s New Zealand building supplies stores to add to the Bunnings chain it operates in the country.
CHH had no comment on the report, when contacted by Reuters.
The company produces particle board, plywood, interior and structural timber with brands such as Pinex and Laserframe.
Mr Hart’s Rank Group acquired CHH in 2006, when it primarily comprised significant forestry plantations used for timber and building products, pulp, paper and packaging. These have since been sold.
