Steel and Tube is to replace Fisher and Paykel Appliances on
the NZX50 index following the takeover of Fisher and Paykel
Appliances by China's Haier.
The NZX said Steel and Tube met all the exchange's criteria
for inclusion on the index, which is the market's benchmark.
The change will be made after market's close on November 13
and will become effective the following day, NZX said.
Haier said yesterday it had exceeded the required 90 per cent
threshold necessary to trigger compulsory acquisition of
Fisher and Paykel Appliances, which it intends to de-list
from the NZX.
Last month, just over half the shares in Steel and Tube were
snapped up by a broad range of private and institutional
investors after they were put up for sale by its parent
company, Australia's Arrium.
Arrium, formerly OneSteel, had earlier decided to sell its
50.3 per cent stake in Steel and Tube for $91.2 million.
Fund managers said a lack of liquidity in Steel and Tube had
in the past acted as a disincentive for investors, but that
the company now had a diverse spread of investors on its
The broader shareholder base would have helped Steel and
Tube's case for its inclusion on the NZX50, which passive
funds use to apportion the weightings of their portfolios.
Steel and Tube last traded at $2.13, having gone through a
$2.00 to $2.54 range over the last 52 weeks.