Sp steadily going up, especially in the last week, says it will be a positive announcement.
Merger most likely scenario?
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Hope Percy's pulse rate is OK over next few hours....
better be good. most of my eggs are in that basket. dis bear needs the honey to go into hibernation over winter.
Unlikely to be anything to do with profit situation or ratings They would have just come out and said this without a halt
Something that requires a bit more detail to finalise (with 3rd party involvement)
GENERAL: HNZ: Acquisition and Financial Forecasts - Summary 10:48a.m. HNZ 14/02/2014 10:48 GENERAL REL: 1048 HRS Heartland New Zealand Limited GENERAL: HNZ: Acquisition and Financial Forecasts - Summary NZX Release 14 February 2014 ACQUISITION AND FINANCIAL FORECASTS - SUMMARY Acquisition Heartland New Zealand Limited ("Heartland") (NZX: HNZ) advises that it has entered into a Sale and Purchase Agreement with Seniors Money International Limited ("SMI") for the acquisition of its New Zealand and Australian Home Equity Release mortgage businesses. The consideration for the acquisition is NZ$87 million. The Sale and Purchase Agreement is subject to a number of conditions being satisfied prior to settlement on 1 April 2014, including SMI obtaining shareholder approval to proceed with the transaction. See the full release attached to this announcement for further details of the acquisition. Capital Raising Heartland is raising NZ$20 million to partially fund the acquisition. The capital raising comprises a NZ$15 million equity placement and a NZ$5 million share purchase plan. Under the share purchase plan, each Heartland shareholder with an address in New Zealand on the register at 5pm on 27 February 2014 will be eligible to invest up to $15,000 in new Heartland shares. Further details of the placement and share purchase plan are included in the attachments to this announcement. Forecast Heartland will shortly be releasing its results for the first half of FY2014. Net profit after tax is expected to be around $16.5 million and in line with the forecast full year outcome of $34-$37 million for FY2014. Heartland's forecast for FY2015 is yet to be finalised and more detailed financials will be available sometime following settlement of the acquisition. Taking all relevant factors into consideration including acquisition and integration costs expected to be incurred in FY2015, the underlying business, together with the contribution from the acquisition, is likely to produce a full year result for FY2015 of between $42-44 million of net profit after tax. See the full release attached to this announcement for further details of Heartland's forecast financial information. Attached: 1. Acquisition and Financial Forecasts - NZX Release 2. Appendix 7 Notice of Event Affecting Securities 3. Investor Presentation - Ends - For further information please contact: Jeff Greenslade Managing Director Heartland New Zealand Limited DDI 09 927 9149 End CA:00247013 For:HNZ Type:GENERAL Time:2014-02-14 10:48:37
Some interesting background on SMI/Sentinel from 2012:
http://www.stuff.co.nz/business/indu...ntinel-lending
From the announcement:
"The weighted average loan to value ratio (“LVR”) of the New Zealand HER loan portfolio is approximately 32.7%, while the weighted average LVR of the Australian portfolio is approximately 31.8%. "
First time in the 90cents for HNZ. There you go.
Hold onto your hats people. With a SPP at 88c (or lower) the shareprice will be volatile as everyone plays their games.
Does anyone know how many NZ shareholders HNZ has? probability of scaling?
Great niche to be a leader in if managed properly, as hnz will probably do.
I hate it when companies rave about acquisitions being EPS accretive. Seems to be a message don't worry about the dilution
So 65 million new shares.
Using the top end of their forecasts EPS in FY14 is 9.4 cents / EPS in FY15 is 9.6 cents
Yes - that is EPS accretive so good news, but not really that exciting
But then again HNZ going to be bigger
I love quoting myself so sorry for not just editing my post. Anyway:
Per the 2013 stats, they have 8,092 shareholders. So if they 50% apply for the minimum, then
8092 x 50% x $2,500 = 10,115,000
Which will need to be scaled by more than 50% to get to the target of $5m. Will they accept over-subscriptions as it is pretty mean to scale those who apply for the minimum?
From their annual report, as at 1 August 2013 (I presume a few of our members on ST is in the last category)
10.0
Shareholder
Information
Size of Holding Number of Shareholders Total Number of Shares % of Issued Shares
1–1,000 shares 1,064 650,147 0.17
1,001–5,000 shares 2,449 6,512,552 1.68
5,001–10,000 shares 1,433 10,856,025 2.79
10,001–50,000 shares 2,310 53,726,289 13.82
50,001–100,000 shares 506 36,190,334 9.31
100,001 shares and over 330 280,768,628 72.23
TOTAL 8,092 388,703,975 100%
Rank Shareholder Total Shares % of Total Shareholders
1 Harrogate Trustee Limited 36,695,489 9.44
2 Accident Compensation Corporation 21,254,284 5.47
3 Philip Maurice Carter 20,973,492 5.4
4 PGG Wrightson Limited 13,333,333 3.43
5 Oceania & Eastern Limited 12,285,439 3.16
6 Cogent Nominees Limited 12,008,764 3.09
7 Gould Holdings Limited 7,417,427 1.91
8 HSBC Nominees (New Zealand) Limited 6,719,424 1.73
9 Citibank Nominees (NZ) Limited 6,664,221 1.71
10 Leveraged Equities Finance Limited 6,518,340 1.68
11 National Nominees New Zealand Limited 5,959,666 1.53
12 FNZ Custodians Limited 5,753,163 1.48
13 Jarden Custodians Limited 4,500,000 1.16
14 Investment Custodial Services Limited 4,464,273 1.15
15 Investment Custodial Services Limited 4,028,738 1.04
16 New Zealand Superannuation Fund Nominees Limited 3,776,134 0.97
17 Heartland Trust 3,420,197 0.88
18 New Zealand Permanent Trustees Limited 3,150,000 0.81
19 Custodial Services Limited 2,906,391 0.75
20 Forsyth Barr Custodians Limited 2,799,787 0.72
TOTAL FOR TOP 20 HOLDERS 184,628,562 47.50