Fletcher to return $300m windfall to shareholders, reinstating dividends

Fletcher Building has announced it will return $300 million capital to its shareholders through a buyback scheme and it will reinstate dividends after the business sold two major assets.

In the best news released by the company for some time, investors are to get a windfall, after suffering no dividend payout when the business recorded losses of almost $1 billion in its B+I division from loss-making construction projects.

The company has just released the good news in its presentation, sent to the NZX, for today's investor briefing in Sydney, beginning this morning.

"Fletcher considers incremental capital is available to be distributed to shareholders through an on-market buyback of up to $300m," the presentation said.

"This form of shareholder distribution takes into account tax effectiveness for all shareholders and earnings per share accretion. The buyback is expected to commence following the FY19 results release. Dividend has been reinstated in FY19," the presentation said.

The company's fortunes changed when it sold its American-headquartered Formica and its roof tile business.

In a separate statement just issued, chief executive Ross Taylor said more.

Read more on nzhearald.co.nz here