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.