Fletcher cleared of NZX listing breach
An investigation into Fletcher Building by the operator of the New Zealand stock exchange has determined that Fletcher did not withhold information that would affect its share price.
NZX Regulation started investigating after the company disclosed material forecast earnings downgrades in March and July last year.
In March, it said its profit for the year could be up to $150 million less than had been indicated just three weeks earlier as the cost of two projects blew out.
One analyst called it a ‘‘serial underperformer’’.
In July, chief executive Mark Adamson left as delays were confirmed to the International Convention Centre in Auckland.
The company’s share price fell as it said its operating profit for the year to the end of June would be another $100m less than forecast in March.
The NZX investigation focused on whether Fletcher breached its continuous disclosure obligations under the NZX Main Board Listing Rules. These rules require listed companies to report information as they receive it so that investors can make informed decisions.
In this case, the NZX wanted to know what information was material, and when the company’s senior executives and directors became aware of it. It also considered the market rumour and speculation during the period.
The NZX said there was no evidence the directors were in possession of material information as a result of those rumours.
As a result, the NZX investigation determined that Fletcher did not breach its obligations.
In a statement, Fletcher Building said it welcomed the findings.