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.
Funding.Would be a "game" changer for both,and intos would want on board.The sp would head north straight away [over $2.50], and a "huge" rights issue would be well supported.HBL would need to raise about 72 cents per share.ie approx. $400mil.
HBL would most probably need ANZ's support for a year or so, to give them time to get bond depositors onboard.
UDC bond depositors who left because of their worries about HNA, would most probably support HBL as a NZ bank owning UDC.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Well, it would need to be a big one if it's to fund a purchase of UDC. According to David Hargreaves, ANZ has $2b funding UDC - which a new owner would need to find from somewhere.
Well, it would need to be a big one if it's to fund a purchase of UDC. According to David Hargreaves, ANZ has $2b funding UDC - which a new owner would need to find from somewhere.
I have already posted my thoughts,posts # 10284 and #10329
Well, it would need to be a big one if it's to fund a purchase of UDC. According to David Hargreaves, ANZ has $2b funding UDC - which a new owner would need to find from somewhere.
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.
Last edited by Beagle; 18-01-2018 at 02:27 PM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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