9 Jun 2015

CHC postpones listing amid earnings uncertainty

2:00 pm on 9 June 2015

Carter Holt Harvey's owner has delayed plans to list on the New Zealand and Australian sharemarkets, due to uncertainty about the future earnings of the Australian timber business.

Graeme Hart's Rank Group intends selling up to 60 percent of the company.

Carter Holt Harvey, which supplies wood products to housing and construction markets in Australia and New Zealand, said volatile market conditions across the Tasman in recent weeks meant it was unable to finalise its prospectus forecasts for the share float.

The company's prospectus was set to be lodged early this month, before a planned listing about four weeks later.

Carter Holt Harvey chief executive Prafull Kesha said the company currently lacked the necessary level of confidence required to produce an accurate earnings target.

He said the company remained keen to list, but it was best to exercise caution and wait until market conditions became clearer.

Salt Funds Management managing director Paul Harrison said the decision to delay plans to list was a good move.

He said the building industry had been seeing quite a lot of volatility across the Tasman.

"We've had the likes of Gentrack... Orion didn't have any numbers, but certainly got marked down for missing people's estimates."

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