FCL seeks to take S. American firm

Press, 23 March 1988, Page 36

FCL seeks to take S. American firm

NZPA-Reuteri Toronto Fletcher Challenge is negotiating the acquisition of a South American forest (products producer in a deal that (would Be valued at ( SCanlOO ([million (5NZ120.6 million), says chief executive, Mr Hugh Fletcher, j j ill Mr Fletcher refused to disclose the name of the company (with which FCL is negotiating or the country! in which; it operates, but; told reporters after addressing \ a ( business: luncheon he, expected a deal to be [signed | “in the

corning months”. He[ said Fletcher [Challenge- will increasingly look ; to South America and the United States for its acquisitions as part of an; effort to become less dependent ■ on the ‘ New Zealand and Canadian currencies.! FCL’s market capitalisation is 17 per cent: of the capitalisation of lall listed' New ; Zealand companies. "Wb are therefore well beyond the) desired proportion of i New Zealand portfolio investors, ( and

thus must : look globally for equity,” he saidJ j: i Mr Fletcher said | 'the company would also' raise the percentage of its lousiness that I is non-fqrest products related, such; as in construction and; nonwood based building materials. i j |i . "The forest products proportion will decline over time,” he said.' Il I Fletcher Challenge | has no plans to merge British Columbia Forest Products andj Crown Forest Industries, he said. 1 1 11-. Late last'year, Fletcher

increased its! stake in Crown Forest!to 100 pier cent;from.96 per cent and’ in BC Forest Products Ito 68.7 per cent from a controlling 47. per cent stake. I “We’re quite comfortable; with the shareholder scene the way it is,” Mr Fletcher said. He added that ICL wanted Canadian employee ownership his year similar to; some ol its other operations. He said employees now owned about 25 per cent of the company’s total shire capital.