FPA investors weigh up where to put their cash

Fisher & Paykel Appliances will delist from the NZX next week, and former investors have already levelled their sights – and hundreds of millions of dollars – elsewhere.

Stocks attracting FPA cash include the Fonterra $500 million Shareholders Fund, Fisher & Paykel Healthcare and Steel & Tube, which replaced FPA in the NZX 50.

Shares in FPA will cease trading on Thursday evening and the stock will make its exit from the NZX next Tuesday.

The move follows Chinese whiteware giant Haier earlier this month securing almost 93 per cent of the company with its offer of $1.28 a share, triggering the right to buy the rest of FPA and delist it.

Kiwi investors will get the lion’s share of the roughly $740m Haier paid for FPA shares, and at least $750m in bonds are also due to mature this quarter.

Craigs Investment Partners adviser Greg Easton said there was a lot of cash ‘‘sloshing around’’.

There was huge interest in the Fonterra Shareholders Fund, due to list on the NZX on November 30, while some FPA shareholders had reinvested their gains into Fisher & Paykel Healthcare. ‘‘They like the name. They’re looking to maintain some exposure to New Zealand manufacturing, I guess.’’ FPH shares have gained 5.6 per cent since November 5 to reach $2.45 yesterday.

Easton said there had also been strong interest in Kiwibank’s $150m subordinated bond offer, and industrial stocks generally were doing well.

FPA investors were probably not under any great pressure to reinvest and some would wait to see what opportunities arose.