This is according to an announcement made my Fletcher Building today, following recent media speculation about a potential takeover.
Fletcher Building also announced plans for a NZ$750 million capital raise that will be underwritten by Macquarie Group Ltd (ASX: MQG).
I think the announcement is good news for Wesfarmers shareholders who will not want to add to their portfolio the complexity of a company that is going through a major restructuring.
Fletcher Building shareholders will also find positives in a stronger balance sheet for the company, although that will come at a cost of dilution of their equity should they not participate in the capital raise.
Although Wesfarmers and Fletcher Building are blue-chip stocks, I’d much rather invest in these three disruptive companies.
We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.
That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.
We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!
You can follow Kevin on Twitter @KevinGandiya.
The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.