We are well positioned to live in interesting times.?...lol.
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We are well positioned to live in interesting times.?...lol.
There is an article on the interest.co.nz website speculating on whether Heartland will make bid for UDC Finance.
The article suggests Heartland will have trouble digesting an outfit the size of UDC if ANZ do not leave some vendor finance in or there is a lack of support by UDC debenture holders.
https://www.interest.co.nz/opinion/9...en-now-quickly
Boop boop de do
Marilyn
If Vodafone is contemplating a float on the N Z market why not UDC as well ?
https://www.interest.co.nz/opinion/9...en-now-quickly
Another capital raise for Heartland coming ?
That would appear to be the nub of the issue. They're presently paying well over the odds at 2.75% to attract at call money..one wonders how much of that support disappears overnight at the slightest hint of additional risk / gearing or the hint of a hurdle to replace the ANZ support you've highlighted ? (My money would be out of there the same day any deal was announced that at least didn't maintain the current capital ratio and ensure HBL had a really long period of time to garner support from debenture holders to replace ANZ funding). On the other hand one would imagine there would be considerable synergies between the two finance companies, opps I mean finance company and bank.
Hmm. Look like I may need to save some cash for the next capital raise sooner than expected
On the other hand, Chris Lee just posted his first weekly newsletter for the year pontificating that based on ~ $60m in profit ANZ could raise "the thick end of a billion dollars" listing UDC on the market. Why discount this heavily just for the sake of a quick sale to Heartland ?...after all its not like ANZ is a forced seller is it !
Jeff Greenslade was a director of UDC.
Other senior HBL management staff are ex UDC.
UDC would be a perfect fit.
Instos would rerate HBL immediately up to $2.50.
Raising the equity capital would not be an issue.
The issue would be UDC bond lenders,most of whom would have been attracted to UDC via ANZ,remaining depositors.
That would take a couple of years to settle down.
Always remember HBL have the highest net interest margin of all the listed banks.
Perhaps Percy but ANZ will want maximum $ and the NZX is desperate for new listings so I think Chris Lee makes a good point.