Steel and Tube to be included on NZX50

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 register.

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.


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