June 29 (Reuters) - New Zealand’s Fletcher Building Ltd on Friday said it would hive off its 50 percent stake in the Sims Pacific Metals joint venture to Sims Metal Management Ltd for NZ$42 million ($28.37 million), in line with its strategy to divest non-core businesses.
The construction firm expects proceeds between NZ$55 million and NZ$60 million from the sale.
Fletcher has previously announced the consolidation of its Australian operations and a management shake-up as it looks to regain investor confidence after mounting losses at the commercial buildings unit.
The losses led to a breach of its debt covenants and the firm reported a steeper-than-expected loss for the first-half. ($1 = 1.4806 New Zealand dollars) (Reporting by Devika Syamnath in Bengaluru; Editing by Lisa Shumaker)