FC Building Reaches Agreement With AXA

Fletcher Challenge Building Reaches Agreement With AXA Pacific

AUCKLAND, 16 March 2001 – Fletcher Challenge has completed negotiations with AXA Pacific in a long-running dispute related to a co-generation power project in Australia. The dispute involves power generation plants at six hospitals in the state of Victoria.

In the agreement, Fletcher Challenge Building will purchase Varnsdorf Pty Ltd, the owner of the project, from AXA for A$41.85 million (NZ$50.4 million).

Interim Chief Executive of Fletcher Challenge Building, Michael Andrews, confirmed that negotiations on the issue had intensified late last year. “It is pleasing that this long-standing dispute has been resolved, and that all parties can move on”, he said.

Fletcher Challenge Building made a provision for settlement of this dispute in its accounts for the period ended 31 December 2000. Settlement is expected to be concluded by 31 March.

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