Fisher & Paykel Finance's credit rating could be raised one notch to BB+ by Standard & Poor's because a takeover of parent Fisher & Paykel Appliances by China's Haier is likely to bolster its credit profile.
Haier has offered $1.20 a share for the 80 percent of FPA it doesn't already own and has agreement from Allan Gray Australia to sell its 17.46 percent into the offer, giving Haier an interest in 37.46 percent. It wants a minimum 50 percent of the company, ensuring control, for its offer to succeed.
"We believe that the current takeover is likely to result in an improvement in the credit profile" of FPA, S&P said in a statement. Raising the finance unit's rating to BB+ from BB would lift it to a level consistent with the stand-alone credit profile, it said.
The finance business, though, is likely to remain a non-strategic subsidiary of Haier, which doesn't have a credit rating, meaning the business isn't likely to result in any additional support from the parent, S&P said.
There was a risk that Haier could even allow a weaker capitalisation of the finance business, though this was remote, given its potential impact and the possibility that the business sold in future.
Shares of FPA rose 0.4 percent to $1.17 today.
BusinessDesk.co.nz
Comments from our readers
No comments yet
Add your comment:
Related News
F and P Appliances set to jump to $1.20 offer price with Haier
Haier signals takeover of F and P Appliances
F and P Appliances forecasts recovery in FY operating earnings
F&P Appliances beats FY guidance as earnings fall
Fisher & Paykel Appliance Holdings
Tough first half for F&P Appliances sends shares plunging
Fisher & Paykel Appliances grants MD Broadhurst incentive options
Fisher & Paykel's finance business drives earnings
F&P Healthcare ups production offshore due to NZ dlr
Daily ShareChat: Fisher & Paykel Appliances
Get quotes for Fisher & Paykel Appliances Holdings Limi (FPA)
NZX Annoucements for FPA
Fisher & Paykel Appliances Holdings Limited Ordinary Shares
Current quote:
FPA $1.18 -0.5
Quotes delayed 20 minutes
Price when article published: $1.17
Previous News
FREE Email News
Stock Quote
Today's Market Numbers
Most Commented On
NZX 15 Index
Honey Boo Boo Child marilyn monroe Nathan Adrian London 2012 Synchronized Swimming London 2012 hurdles Taylor Kinney Beach Volleyball Olympics 2012
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.