Default KiwiSaver provider Simplicity, and the NZ Shareholders Association, are meeting with the Fletcher Building Chair and chief executive this week to discuss the GIB supply crisis.
Simplicity owns $35 million dollars of Fletcher Building shares on behalf of its members, representing 0.8% of issued shares.
Last week, Simplicity Living, owned by Simplicity members, cancelled all contracts to purchase GIB for its first 550 long-term rental homes in Auckland.
It offered to share details on how to import high-quality substitutes, and has already received over 60 enquiries from developers and builders.
They range from New Zealand’s biggest group home builders to family-run developers, from all over New Zealand.
“The number of enquiries in such a short time confirms that this is a nationwide crisis,” Simplicity Living managing director Shane Brearly says.
The NZ Shareholders Association is also attending the meeting, given its long-standing concerns regarding the governance of Fletcher Building.
“We’re concerned about the political and reputational impacts caused by the GIB supply issue on the sustainability of shareholder returns,” NZ Shareholders Association chief executive Oliver Mander says.
Simplicity managing director Sam Stubbs says he hopes the meeting would be open and constructive.
“As a customer of Fletcher Building, Simplicity Living has voted with its feet and cancelled all future GIB orders.
“And, as a shareholder, we want to understand how they can better deliver for all stakeholders,” he says.
The meeting is scheduled for this Friday, June 17.
