HGH - Heartland Group Holdings

[winner69]

Jeff was pretty good Snoops but things started going down hill when he started using the adjusting/normalising trick to smooth profits and then went down the ‘legacy issues’ path

Adjusting/normalising to make profits look good ….legacy issues were stuff ups he didn’t get around to fixing.

Echos of Ross Taylor at Fletchers eh

Might look back to remind myself what happened to GE when the master of profit smoothing Jack Welch left and they reverted to proper reporting.

[Rawz]

Jeff was pretty good Snoops but things started going down hill when he started using the adjusting/normalising trick to smooth profits and then went down the ‘legacy issues’ path

Adjusting/normalising to make profits look good ….legacy issues were stuff ups he didn’t get around to fixing.

Echos of Ross Taylor at Fletchers eh

Might look back to remind myself what happened to GE when the master of profit smoothing left in Jack Welch left and they reverted to proper reporting.

You reckon the new CEO will come in and clean out any skeletons in the closet?

[winner69]

You reckon the new CEO will come in and clean out any skeletons in the closet?

Got to get through year ending June 24 first …no doubt a few/lot more ‘one offs’ will be forthcoming

And F25 will disappoint as Challenger integration will be much more difficult than first thought

Actual Reported NPAT in F22 was &95.1 and then $95.9 in F23 and Jeff says about $95m this year F24 but I betcha it will be <$90m and F25 won’t be nuch better and that’s before any big clean out you suggested might happen.

Pretty gloomy outlet eh

But keep on reporting normaised /adjusted npat we’ll be OK and share price will creep up

[ronaldson]

No announcement yet re the outcome of the retail component of the capital raise. The Timetable accompanying the documentation scheduled that for today so Link/HGH are cutting it fine.

[pierre]

No announcement yet re the outcome of the retail component of the capital raise. The Timetable accompanying the documentation scheduled that for today so Link/HGH are cutting it fine.

The retail offer was 81% subscribed. Those who applied for extra shares got 'em all. The underwriter left holding the baby for 15 million shares. Probably a bit of selling pressure to come over the next week or so.

[iceman]

HGH
24/04/2024 16:12
OFFER
PRICE SENSITIVE
REL: 1612 HRS Heartland Group Holdings Limited

OFFER: HGH: Heartland completes Retail Entitlement Offer (81% take up)

NZX/ASX release
24 April 2024

Heartland completes Retail Entitlement Offer (81% take up) and NZ$210m equity
raise

Heartland Group Holdings Limited (NZX/ASX: HGH) (Heartland) is pleased to
announce that it has successfully completed the retail entitlement offer
component (Retail Entitlement Offer) of its NZ$105 million underwritten 1 for
6.85 pro-rata accelerated non-renounceable entitlement offer (Entitlement
Offer).

Heartland is pleased to confirm it has raised a total of NZ$210 million under
the Placement and Entitlement Offer announced on 8 April 2024. This includes
gross proceeds of approximately NZ$131 million received under the
institutional component of the Entitlement Offer and Placement.

Heartland received strong support from its Eligible Retail Shareholders for
the Retail Entitlement Offer, in line with Heartland's expectations. The
Retail Entitlement Offer raised gross proceeds of approximately NZ$79
million. Heartland's Eligible Retail Shareholders subscribed for
approximately 64 million new fully paid ordinary shares in Heartland (New
Shares) (including approximately $14 million of oversubscriptions).

Eligible Retail Shareholders who took up their entitlements in full and
applied for New Shares in excess of their entitlements received all of the
New Shares for which they applied. The effective take up rate by Eligible
Retail Shareholders was therefore approximately 81%.

The approximately 15 million New Shares not taken up under the Retail
Entitlement Offer have been allocated to the underwriter and/or to
sub-underwriters procured by the underwriter, including institutional
investors who participated in the Placement and wished to purchase more
shares.

The Placement and Entitlement Offer structure utilised by Heartland has met
Heartland's key objectives, including:
1. ensuring all Eligible Retail Shareholders were treated fairly - all
applications for shares by Eligible Retail Shareholders were accepted,
meaning they could maintain their existing percentage shareholding through
the offer; and
2. introducing and encouraging institutional participation (including in
particular by investors in Australia) - institutional demand through the
equity raise exceeded the total NZ$210 million raised.

The New Shares to be issued under the Retail Entitlement Offer are expected
to commence trading on the NZX Main Board on Friday 26 April 2024 and on the
ASX on Monday 29 April 2024 and will rank equally with existing Heartland
shares.

Heartland wishes to thank all existing and new shareholders who participated
in the equity raise for their continued support.

- ENDS -

The person(s) who authorised this announcement:
Jeff Greenslade, Chief Executive Officer
Andrew Dixson, Chief Financial Officer

For further information, please contact:
Nicola Foley
Group Head of Communications
+64 27 345 6809
nicola.foley@heartland.co.nz
Level 3, Heartland House, 35 Teed Street, Newmarket, Auckland, New Zealand

[Rawz]

Wow not good. Very likely SP goes under $1 now

[ronaldson]

Wow not good. Very likely SP goes under $1 now

Not sure why you think that. Even today after the announcement the close price was $1.06 and the VWAP was $1.0684.

I applied, under two hats, for the full entitlement plus about 20% extra in each case, albeit the sums were small, less than $5k in aggregate meaning I will still have less than 30k in all. My conclusion about the roughly $15m shortfall overall is that, firstly, it reflects that many folk do not have surplus monies lying around currently, and secondly and most importantly the share price following the institutional allocation take up was consistently sub $1.10 so not indicative of windfall gain by participating. Add in the risk factor and more retail holders than usual have flagged their involvement away.

Jarden/Harbour can easily absorb the sum involved and rather than flood the market in the near term will hold until the dust has well and truly settled on the transaction. In summary the capital raise was well priced to achieve the desired outcome, and underwriters are paid for a reason, which is certainty.

[Ggcc]

Wow not good. Very likely SP goes under $1 now

It will just mean we will see it hang around these prices for a while. I will buy some more if it goes below $1

[Rawz]

Not sure why you think that. Even today after the announcement the close price was $1.06 and the VWAP was $1.0684.

I applied, under two hats, for the full entitlement plus about 20% extra in each case, albeit the sums were small, less than $5k in aggregate meaning I will still have less than 30k in all. My conclusion about the roughly $15m shortfall overall is that, firstly, it reflects that many folk do not have surplus monies lying around currently, and secondly and most importantly the share price following the institutional allocation take up was consistently sub $1.10 so not indicative of windfall gain by participating. Add in the risk factor and more retail holders than usual have flagged their involvement away.

Jarden/Harbour can easily absorb the sum involved and rather than flood the market in the near term will hold until the dust has well and truly settled on the transaction. In summary the capital raise was well priced to achieve the desired outcome, and underwriters are paid for a reason, which is certainty.

My thinking is that these cap raises sap demand, and since it wasn’t oversubscribed ALL demand is sapped. So sellers will have to find buyers and I presume it will be at or below $1.

No doubt a few traders in to make a quick 5-7% gain asap. So will look to exit those, thus sell side pressure.

Lastly it was what happened in the past (SP goes to cap raise price). The past is often a good predictor of the future.

I’m just having a guess. I think current levels are very attractive so if I was a holder I wouldn’t be fussed. Basically can take comfort that HGH will one day trade again in the 1.2-1.5x book value range, especially as rates cycle back down.