Fletcher Building shares have gained about 14 percent since Kingfish took a 3.1 percent stake and the listed investment firm's manager remains upbeat on the stock.
Fletcher Building has picked up KiwiRail chief executive Peter Reidy to head the company's construction division, which oversees the problematic Buildings + Interiors unit.
Fletcher Building is selling its stake in metal recycling company Sims Pacific Metals for $42 million as part of its new strategy to refocus on core businesses.
Fletcher Building chief executive Ross Taylor says the company won't increase the provisions it announced in February against remaining Building + Interiors projects even though there's no completion date for the 200-room Novotel Christchurch Airport, an $80 million development that was meant to open last December.
Fletcher Building's outgoing chair Ralph Norris announced the board's audit and risk committee chair Bruce Hassall will succeed him when he steps down from the troubled building company in September.
Fletcher Building chief executive Ross Taylor said the company expects to take restructuring charges of $85 million to $95 million in its 2018 results as it moves to a decentralised operating model with more divisions and will also write down the value of its Rocla and Roof Tile businesses.
Fletcher Building has reached its $750 million equity raising target after selling 20.2 million shares under its retail shortfall bookbuild, at a premium price to the entitlement offer but a discount to the trading price of the shares.
Bad headlines about Fletcher Building have overshadowed a business with "healthy prospects" and a new management team that is "a catalyst for change", says listed investment fund Kingfish.
This table from Fletcher Building’s results presentation on Wednesday clearly shows the company’s incompetent corporate governance.
Attempts by the Commerce Commission to investigate reports of anti-competitive behaviour by Fletcher Building in Christchurch failed to come up with evidence, Commission chairman Dr Mark Berry told the Commerce select committee on Thursday.