Fletcher Building has agreed to sell the Formica Group to Netherlands-based Broadview Holding BV for $US840 million, as New Zealand's largest builder streamlines its business.
Fletcher Building, which is also listed on the ASX, said on the Tuesday the sale marked the end of its plan to sell non-core assets
It also confirmed its intention to reinstate dividends in its 2019 financial year.
"Our five-year strategy is to refocus Fletcher Building's capital and capability behind our New Zealand and Australian businesses, with building products and distribution at our core," chief executive Ross Taylor said, adding he expected the deal to be completed by the end of the 2019 fiscal year.
Fletcher announced in April a NZ$1.25 billion ($A920 million) refinancing plan and the proposed sale of Formica as well as its steel roofing tiles business, which was completed in November.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
Formica designs, manufactures and distributes surfacing products for commercial and residential applications.
Fletcher Building said it would restart its dividend payments with an interim dividend to be declared upon the finalisation of half-year results in February.
"Given the expected settlement timing of the Formica sale, the FY19 dividend is likely to be weighted towards the final dividend," the company said in a statement.
Fletcher shares were last trading on the ASX at $4.58, more than half the value of a near 11-year peak of $9.86 in December 2016.
