Don't Turners potentially do quite well by throwing in the towel and selling any shares they may have acquired already to HNZ ?
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Don't Turners potentially do quite well by throwing in the towel and selling any shares they may have acquired already to HNZ ?
Well I suppose they could by selling the small holding they had in MTF before they made the recent offer. But now with HNZ having made an alternative offer, if I understand this correctly, any SH that may have accepted Turners offer have a "cooling off period" in which they can change their mind.
Suddenly HNZ are able to value MTF notwithstanding the fact that we don't know the outcome of the supreme court decision which could fundamentally alter the value of MFT ?
How is that being prudent with shareholders money ?
The offer is conditional on DD (ie the court case) unlike Turners which is unconditional. Basically they have floated a high offer out there to stop holders taking Turners offer, knowing they can reduce the offer if the court case is unfavorable. If they didn't do this, Turners would get a blocking holding and it would be all over.
Fair enough but the board of MTF appear to dislike both offers
http://www.sharechat.co.nz/article/e...-uncertainhtml
http://www.heartland.co.nz/news/231/...land-bank.aspx
Amazing...didn't they check with Roger ?:)
https://www.nzx.com/companies/HNZ/announcements/271848
Fitch affirms Heartland's credit rating. Stable outlook. It gave Heartland a vote of confidence with this statement: “core asset quality to remain sound, benefiting from continued improvement in underwriting standards and good economic conditions”.
We saw a substantial increase in doubtful debt provisioning for consumer loans in the most recent financial result and by my reckoning there should have been a commensurate increase in provisioning for dairy loans based on known financial information and heavily stressed loans at that time. I guess they couldn't do that otherwise they wouldn't get their nice juicy bonus's for the year ?
Relying on luck to get you out of potential trouble is not a prudent way to run a bank in my opinion and I remain unconvinced about some of their new consumer loan initiatives.
With a lack of feasible takeover opportunities I'm concerned these extremely well paid senior managers are not really adding a lot of value. HER acquisition didn't really add a lot of value did it. I predict the MTF fiasco will drag on for quite a considerable time.
The internal controls in the Harmoney system have yet to prove themselves up so could we see further significant provisioning on loans through this "unproven" channel ?
Was the head of new product development pushed or did he jump before the custard hits the fan in this regard ?
I'm not convinced they're all that well positioned.
Some take-out from Fitch's report.
"The stable outlook reflects our view that HBL [Heartland Bank Limited] is likely to continue its solid performance over the next 12 to 24 months."
High household leverage and NZ high property prices."The impact for HBL is limited as its residential mortgage exposure is insignificant."
Dairying."HBL conducted stress tests to assess the impact of prolonged low dairy prices,which were found to be manageable as of August 2015"
"The bank benefits from a more balanced asset-liability-maturity profile relative to domestic peers as HBL's lending products typically have a shorter term maturity."
"HBL's capital position benefits from strong profitability and sound levels of retained earnings."
I guess the only surprise to me ,was after reading such glowing commentary, Fitch's did not upgrade HNZ's credit rating.!!! lol.