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.
These 3 stocks could be the next big movers in 2020
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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.
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