Fletcher Building reaches multi-million dollar settlement over leaky pipes
Photo: supplied
Fletcher Building has reached a multi-million dollar settlement over the issue of leaky pipes in Western Australian homes which has dogged the company.
Fletcher Building shares had been on a trading halt ahead of the announcement. Trading will begin again soon.
It has just told the NZ stock market that it will have to set aside $A155 million ($168 million) in its next financial statement to cover the settlement. The West Australian government will pay up to $A30m ($32.5m).
Fletchers said it expects the first year of the settlement will need some $A40m ($43m) to $A50m ($55m), and in subsequent years in the order of A$15m($16m) to A$35m ($38m).
At issue has been who is responsible for leaky pipes in Western Australian homes. The pipes are manufactured by Fletcher's Iplex su...