NZ's Fletcher Building jumps on agreement to resolve plumbing issues in WA homes

Fletcher Building

30/08/2024 05:02

** Shares of Fletcher Building  FBU.NZ  jump as much as
10.8% to NZ$3.180, logs biggest intraday pct gain since May 23
    ** The NZ-based builder says its unit Iplex Piplines
Australia (Iplex AU) and the Western Australian (WA) government
reached agreement to address plumbing failures in some of the WA
homes built using the co's product, Typlex Pro-Fit pipe
    ** Says Iplex AU and WA govt to jointly bear the direct cost
of the programme, with the govt's contribution of 20% capped at
A$30 mln ($20.40 mln)
    ** FBU says will record a provision of about A$155 mln in
its FY25 results if the agreement is finalised
    ** About 1.6 mln shares exchange hands, compared to the
30-day avg of about 1 mln shares
    ** Stock down ~40% YTD, as of last close 
    
    


($1 = 1.4706 Australian dollars)

 (Reporting by Echha Jain in Bengaluru)
 ((Echha.jain@thomsonreuters.com))