Fletcher shares slide on SkyCity's $306m legal claim
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More news: Fletcher Building shares fell in morning trade after the building products company was sued by casino operator SkyCity Entertainment over the delayed construction of the New Zealand International Convention Centre in Auckland.
Fletcher shares were down 2.9% to $2.85 at 11:40am AEST. SkyCity shares edged up 0.3% to 87.3 cents.
SkyCity sues Fletcher Building over delayed convention centre
The news: Casino operator SkyCity Entertainment will file legal proceedings against building products group Fletcher Building, seeking NZD330 million ($306 million) in damages for losses related to the delayed construction of its convention centre in Auckland.
The numbers: SkyCity said the claim seeks damages for losses arising from ongoing delays in the completion of the New Zealand International Convention Centre (NZICC), with the project's completion now almost six and a half years behind schedule.
The context: The claim alleges that Fletcher's breaches of contract constituted "gross negligence, and/or a persistent, flagrant or wilful neglect" to carry out obligations under the building works contract.
SkyCity said it attempted to resolve the claims by agreement with Fletcher but has been unable to do so.
Fletcher commented that it has already paid "significant liquidated damages" to SkyCity in relation to the delays and will "vigorously defend itself" against the claim.
Fletcher also confirmed that it has completed the construction work and anticipates handing over the site to SkyCity ahead of the NZICC's opening in February 2026. The company said it expects to record a further provision of $12 million to $15 million after re-assessing costs for the final stages of the project.
