About Us  |   Advertise  |   Contact Us  |   Terms & Conditions  |   RSS Feeds
deposit rates

Heartland increases capital raising to $58 million

Heartland Building Society has increased its capital raising by $3 million to $58 million to finance its purchase of PGG Wrightson Finance.

Wednesday, 20 July 2011

That's after it secured a further unnamed "institutional commitment" to subscribe to $3 million worth of shares at the higher of 65 cents per share or the price set by its planned $35 million share purchase plan (SPP) for its existing retail investors.

The already announced $20 million private placements in equal amounts to PGG Wrightson, the finance company's listed parent company, and Heartland's former major shareholder, the listed Pyne Gould Corporation (PGC), are at 75 cents per share.

Heartland shares were trading at 72 cents ahead of the June 14 announcement the company was to buy the PGG Wrightson finance company.

Since then, Heartland shares have fallen to 61 cents.

Under Heartland's SPP, individual shareholders will be able to subscribe for up to $15,000 worth of shares. Heartland says it will release details of the SPP's terms on or about July 21 and it is expected to open on August 8.

The SPP price will be the lesser of 75 cents per share and a price to be determined at an unspecified discount to the average end-of-day market price over an unspecified period before the SPP closes, Heartland says.

The SPP is fully underwritten, including $10 million of it by PGC.

Heartland says the other $25 million is being underwritten by Impact Capital Management, with both underwriters agreeing any shortfall will be placed to the underwriters at either 65 cents per share or the SPP price, whichever is the higher.

"The floor of $0.65 represents a discount of 25% to the current NTA (net tangible assets) per share of Heartland," the company says.

Heartland says Impact is a private company representing Tomlinson family interests and is "a long-term value investor who shares the Heartland vision and opportunity to create" a new Zealand-controlled, stock exchange-listed bank "that serves the needs of 'heartland' New Zealanders."

Commenting is closed

print

Printable version

print

Email to a friend
Newsletter Signup

Weekly Updates including news and commentary

Today's Best Bank Rates
Rabobank 0.75
Based on a $50,000 deposit    More Rates »
Today's Top 5 Deposit Rates
InstitutionRateProduct
NZCU Auckland 1.00 Success Saver
First Credit Union 0.75 Online Savings
Rabobank 0.75 Rabobank PremiumSaver - max rate
Heretaunga Building Society 0.60 On Call
NZCU Baywide 0.60 Success Saver
Based on a $50,000 deposit    More Rates »
Find a Rate
Show me the rates for
$
invested over
Use the full calculator
Cash PIE Rates
Institution Rate 30% 33%
ANZ 0.10 0.10 0.11
ASB Bank 0.15 0.16 0.17
ASB Bank 0.15 0.16 0.17
ASB Bank 0.15 0.16 0.17
ASB Bank 0.15 0.16 0.17
ASB Bank 0.15 0.16 0.17
BNZ 0.10 0.10 0.10
Heartland Bank 0.40 0.40 0.40
Kiwibank 0.05 - -
Kiwibank 0.25 - -
Nelson Building Society - - -
SBS Bank - - -
TSB Bank 0.25 0.25 0.26
Westpac 0.20 0.21 0.23
Westpac 0.05 0.05 0.05
Westpac 0.25 0.26 0.27

More »

Previous News
Latest Trends
Coming Soon
MORE »

Disclaimer - Every possible effort has been made to keep the information in the tables and on this site as accurate as possible, however, neither the publisher, Tarawera Publishing, nor anyone engaged to compile the rates and this site accept any liability for inaccuracies or any loss suffered as a result. It is strongly advised that readers check loan details with providers. The full terms and conditions of this site can be found here.

© Copyright 1997-2021. Tarawera Publishing Ltd. All Rights Reserved.