Carter Holt’s $1b float on hold

Carter Holt refuses to comment on speculation that the real reason its sharemarket float plans have been put on hold is to consider an offer from the owner of Bunnings Warehouse.

In a statement issued on Tuesday morning, the company instead said plans to re-list on the New Zealand and Australian stock exchanges were on ice until it could accurately finalise its earnings forecast.

However, The Australian newspaper said the listing had been delayed because Wesfarmers was considering buying Carter Holt Harvey Building Supplies to benefit its Bunnings chain.

A spokesman for Carter Holt said it would not comment on speculation.

The building and construction materials company was originally expected to complete its initial public offering (IPO) next month.

However, it said changes in market conditions in recent weeks meant the earnings outlook for the Australian timber business was now uncertain.

The new board had decided the forecasts in the IPO document would not have the ‘‘necessary level of confidence required’’ in the accuracy and probability of hitting the mark.

Carter Holt Harvey chief executive Prafull Kesha said the decision had the full support of the current owner, richlister Graeme Hart’s Rank Group.

No timeframe was given for resuming the process, but the Australian Financial Review reported that the float might not be until as late as the December quarter.

Carter Holt is estimated to be worth about $1 billion.

Rank Group said it expected to retain a ‘‘significant stake’’ in the business following the float.

Sources suggested it would keep 20 to 30 per cent, depending on what price it got for the rest of its holding.

Credit Suisse, First NZ Capital, Deutsche Bank, Deutsche Craigs and Forsyth Barr have been appointed joint managers of the offer.

Carter Holt comprises timber products businesses Woodproducts Australia and Woodproducts New Zealand, and Carters Building Supplies, which together employ 5000 people.

Hart has been selling off parts of the Carter Holt empire since Rank Group bought it for $3.6b in 2006, when it also included forests and farms.