Another is doing a share buy back and having fewer shares.
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Sounds like they feel that that much touted equity ratio is far too high .....sorry percy
I think EBO referred to it as "lazy capital" ,not required in the business, so returned it to shareholders,via a special dividend.From memory non taxable as it was a return of capital .
HNZ saying the same thing.
The next few weeks could be very interesting, should you consider the announcement of HNZ's decision on non-core property, and talk of being over capitalized be connected.
Heartland is lending in the more difficult capital areas. Where its machinery, vehicles etc, not property. MARAC went broke only a few years back, due to insufficient capital. The world economies are in melt-down. Heartland needs to keep its capital base intact, ready for uncertain times. I am trying to be realistic, plus I put cash into Heartland at their cash call only a few months ago. From memory at 52 cents a share. Why should they buy-back at 80 cents a share now?
Oh mouse - you in big trouble now making those sort of assumptions ... WW3 will now break out
Mouse they didn't go broke .... just needed a bit of financial engineering and one of the reasons why PGC needed a huge cpaital rqaising .... but not broke
You should know better than to use words like 'broke' on this thread
Percy wull remind you thay learnt their lesson
I notice HNZ are pushing hard towards the rural sector with loans to farmers for livestock purchases which farmers will be spending money on to re stock post drought. Should work well for them.