After a 31.25 per cent increase in its share price, Fisher & Paykel Appliances has come under scrutiny from the NZSX, questioning whether any information has been withheld by the manufacturer.
The NZSX sent an email to Fisher & Paykel Appliances Holding Limited yesterday in relation to its share price on the NZSX Market at $0.63 per share. This was an increase of 15 cents per share or 31.25 per cent since commencement of trading on Friday 1 May 2009.
Due to this dramatic price movement the NZSX made an enquiry as to whether F & P were still complying with the Listing Rule 10.1.1., which in summary is a rule that requires issuers immediately to disclose any material information to the NZX.
Mark Richardson, chief financial officer, Fisher & Paykel, responded this morning claiming that the company was not withholding any information.
“Fisher & Paykel Appliances Holdings is not aware of any specific reason for the increase in its share price since commencement of trading on Friday 1 May 2009,” he said.
“As noted in the announcement the Company made on 28 April 2009, the Company’s banking syndicate has extended the date for repayment of the interim bank funding facility until 29 May 2009 and the Company is continuing to work closely with its banking syndicate with a view to refinancing the total bank debt of the Appliances Group by that date, subject to the Company and its banks being able to mutually agree terms.”
“The Company is also continuing to consider a range of alternatives to strengthen its balance sheet. The Company will continue to release information to the market as it becomes available.”
Richardson however did comment that the share increase could be due to a recent newspaper article in the New Zealand Herald.
“The Company notes that there has been media coverage (an article in the New Zealand Herald on 6 May 2009) reporting both improved sentiment towards FPA (and other cyclical stocks) and a significant increase in Whirlpool’s share price.”
Richardson further reinforced that the company believes that it is continuing to comply with Listing Rule 10.1.1.