Fletcher Building announces on-market share buy-back

Company News

by Rachael Jones

Fletcher Building (ASX:FBU) will undertake a capital return to shareholders of up to NZ$300 million through an on-market share buyback.

Its dividend policy remains unchanged, with a targeted pay-out ratio of 50 per cent to 75 per cent of NPAT, before significant items.

Fletcher Building also confirms FY19 guidance of EBIT (before significant items) of NZ$620 million to NZ$650 million.
The buyback will start after the release of the Company’s full year results.

Fletcher Building CEO Ross Taylor says: "Following the completion of the Formica sale for NZ$1.2 billion, we have considered a few key factors for allocation of the sale proceeds. The Company is well below its target leverage range, and better than previously forecast".

They have around NZ$600 million of debt that we will repay over the next 12 months.

Shares Fletcher Building (ASX:FBU) are trading 0.1 per cent lower at $5.08.

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.