I guess it is hard to word the offer, without it being seen as investment advice. Hopefully one of the journo's picks this up and spins the appropriate slant on it.
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I guess it is hard to word the offer, without it being seen as investment advice. Hopefully one of the journo's picks this up and spins the appropriate slant on it.
Yes.
Minimum holding requirement is 500 per NZX rules (can be force to sell if under that) so that should clearly be covered.
At current shareprice (86c) if they had set the maximum at 5000 shares, that would be $4,300. That is probably the right level.
Setting it at 10,000 means those who hold upto $8,600 worth. That can be sold for less than $60 (ASB telephone rate) and even lower if they have an internet broking account.
They have set the limit now so no point arguing where they should have set it (sorry for bringing up). Overall it is a positive thing and should clean up the bottom part of the register a bit.
I wonder why they have done it though - they aren't the first company to be targeted and no other company that has been has offered a similar scheme.
I also wonder since have obviously gone to some cost in doing this, whether they should have done a compulsory sale for those with less than 500 shares at the same time. (that would probably send the wrong message so can see why they didn't but from a practical perspective, is a missed opportunity).
Disc: Holding (10,000 shares incidentally)
Possibly Heartland is taking advantage of an opportunity to reduce the number of small shareholders, which no doubt cost the company.
Will hats off to HNZ,being proactive and doing the right thing to help small shareholders receive full value for their shares.
Good on you HNZ.
I commend Heartland for doing this. I think they are genuinely trying to protect smaller holders from these vultures. Unfortunately I think it will not work unless they send offers to the postal addresses of the affected shareholders as they are unlikely to be reading NZX announcements. If they were, they wouldn't be considering selling into the offers.
But furthermore, I think Heartland is the first listed company subjected to these offers, that actually stands up and sends a signal to the vultures that they are not going to get away with it without a fight, something the FMA should be doing with much more vigour.
It will be interesting to see how many accept. I assume they will be sold on-market so it could have an impact on the shareprice. Could be a bit of selling pressure:
Average turnover is under $200k per day.Quote:
As at June 30, 2012, some 4,747 shareholders owning 4.2 percent of the company held parcels smaller than 10,000 shares, according to Heartland's annual report. At today's price of 86 cents, that's about, and implies broking fees of some $140,000 at $30 per transaction.Quote:
$14.2 million of shares
Head of treasury and strategy Craig Stephen said about 4.6 percent was held in the qualifying parcels.
Now you have me going around in circles. A share buyback as a prelude to capital raising? Isnt that just taking from peter etc. Dilution v undilution. One way of cleaning up the register I suppose and stopping shares being accumulated cheaply from the uninformed but a lot of paperwork one would have thought.