No surprises there.
Confirms why I don't like SPPs.
Wasted effort.!
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No surprises there.
Confirms why I don't like SPPs.
Wasted effort.!
My situation is that HNZ is already on the limit of the self-imposed 15% of my portfolio in any one share. That includes a ridiculous (for the current market state) 23.91% cash so I really need to be spending the cents on other things (but what?)...
...or bending the rules :ohmy:
Best Wishes
Paper Tiger
Maybe this explains it...
Why is there a maximum application amount?
The offer under the SPP needs to comply with the conditions imposed
by New Zealand securities legislation and Listing Rule 7.3.4(c) which caps the
maximum application amount of each Eligible Shareholder at $15,000.
The SPP is being offered to EligibleShareholders under the terms of the
Securities Act (NZX — Share and Unit Purchase Plans) Exemption Notice
2010. That exemption notice also imposes an annual limit of $15,000 on
the total issue price of securities that may be offered to each shareholder.
Yes I think a lot of shareholders will be disappointed, but $5mil was always going to be massively oversubscribed.
My not be able to get "the good oil" on deposit rates.Was looking forward to Heartland's presentation with Macquaries at 5.30 pm on Wednesday 9th April,however it looks as though 20 plus schools in Nelson, may have the pleasure of availing themselves with opportunity of buying my books.
Was not really thinking of you.Was thinking the paperwork to send to all shareholders,then all the fees Link will charge.Same effort could have raised a decent amount.Say they were looking at $30mil plus, people would have applied for $15,000.I did not bother to apply for any for my wife,and a trust I am involved with did not apply either.I did not break a deposit and only applied for the $2,500 minimum.
The positive I suppose is they only raised the amount needed.
Most financial companies seen to have vey little organic growth,and growth comes from acqusitions.The Sentinel acquisition will work well for Heartland[plenty of growth].The board will have confidence to look for other acquisitions knowing shareholders are prepared to open their wallets. Rising confidence in NZ ecomony should benefit Heartland [an others] .
Yes I think arbitration was never on.Had the issue been bigger, and they had stated they would accept over subscriptions,then you could have had fun with arbitration.
You mean Arbitrage, performed by Arbitraguers
Mathematically it is defined as follows:
http://upload.wikimedia.org/math/c/7...12dc7adc50.pngwhere http://upload.wikimedia.org/math/a/1...75856a1a48.png and http://upload.wikimedia.org/math/f/2...41c9eaeba2.png denotes the portfolio value at time t.
I think the arbitrageurs will be left holding the refunds, and might scurry back into the spot market in a couple of weeks....Hmmmm, I might try and arbitrage them :p
Heartland New Zealand SPP Issue Price Fixed
20 March 2014
Heartland New Zealand Limited (“Heartland”) (NZX: HNZ) advises that the price at which shares will be
issued under its $5,000,000 Share Purchase Plan (“SPP”) has been fixed by the board at $0.8541 per share
which represents the lesser of:
(a) a 2.5% discount to the average end of day market price of shares over the 5 day trading period
from 13 March to 19 March 2014; and
(b) $0.855 per share (being the price paid by investors in the equity placement, reduced by the
amount per share of the cash dividend declared by Heartland on 25 February 2014).
The SPP offer received strong shareholder support with Heartland receiving applications totalling
$20,475,000 which exceeded the offer maximum of $5,000,000 by $15,475,000 or 309.5%. In accordance
with the terms and conditions of the SPP, Heartland will scale back all applications on a proportionate
basis, based on the total amount of application moneys received from all applicants (and any rounding of
the number of shares to be allotted will be up to the nearest share).
Shares to be issued under the SPP offer are expected to be allotted on 25 March 2014, with refunds direct
credited or mailed by cheque to shareholders within 5 business days of the allotment date. No interest will
be paid on any application monies returned to shareholders.
- Ends -
For further information please contact:
Jeff Greenslade Geoff Ricketts
Managing Director Chairman
Heartland New Zealand Limited Heartland New Zealand Limited
DDI 09 927 9149 DDI 09 377 7503
And that's exactly the point rocketship. They did not have to limit the shareholders pool to $5M and as it turned out, limiting the highest allocation to each shareholder to a lousy $ 3,663.
I am disappointed and hope the message Belgie suggested we sent, has been received and acknowledged by the Board.
Thanks to the posters on here that suggested the scaling would be very big as it made me increase my application significantly.
Hopefully they have learnt that next purchase, they dont need to get institutional investors if the amount is small or that (and I am not sure if this is practical), that the institutional placement should be after the SPP. I am sure a few funds would have effectively underwritten it at no fee other than the discount given.
Ok, so the name of the game is not to make a profit as such :blink: but to support the company in it's noble quest to allow old people to stay in their own homes instead of them signing up with the likes of MET, RYM & SUM :t_down: (Wait - hang on a minute - that can not be right :ohmy:).
So having applied for the full whack it seems I will get 4,289 new shares and a bonus $11,337 rebate.
Lost interest @ 3% on the $11k over two weeks is about $13.10 and the total price difference between the $0.8541 and the market price is $68.20 @ $0.87 or $111.09 @ $0.88.
So overall nearly a worthwhile exercise.
Best Wishes
Paper Tiger
Yes this is something I never understand. I posted my application on a Monday and the money came out of my account on Tuesday. Yet we have to wait a couple of weeks for return of our cash that they don't now want, despite them knowing already exactly how much each of us will/should get back. It could be returned at the press of a button ! I understand why HNZs biggest supporter Percy can't be bothered taking part in the SPP
The interest would either stay with Link or Link would be paid a fee for service provided.
Great to see that HNZ is still well positioned and should be for some time to come?!!
Just logged in and surprised to pick up my SPP scaleback on market at 0.86c considering there was $15m oversubscriptions at 85.5c