Fletcher Building explores sale options for construction arm

The news: Building materials supplier Fletcher Building has started exploring "potential divestment options" for its construction division, after receiving inbound inquiries by a number of interested suitors, and following a strategic review of its assets.

The context: The Auckland-based group, which has appointed financial advisors to support the process, noted that no decision has been made to sell yet.

Fletcher shares rocketed last month after the company told investors that it had received outside interest in its construction arm, which includes its major projects unit, construction services business Higgins, and civil engineering contractor Brian Perry Civil.

What they said: "Given the quality and strong recent performance of our construction businesses, and the role they will play in New Zealand's growing infrastructure pipeline, we were not surprised to receive inbound interest for them, which has motivated us to test whether there are attractive divestment options," said Fletcher's managing director and chief executive Andrew Reding.