HGH - Heartland Group Holdings

[Bjauck]

These accelerated institutional placements really do disadvantage retail shareholders.

They get their $1.00 new shares on 11th April while retail shareholders do not get theirs until 26th April, giving the institutions an advantage of taking profits for 2 weeks as the shares trade ex-entitlement* 9th April.

* Theoretical ex-entitlement price - $1.17

Such is the lot of retail shareholders in NZ. Those institutions will be getting shares at a good discount. The selling pressure in the last few weeks makes sense now.

[Rawz]

* Theoretical ex-entitlement price - $1.17

How is that calculated? I get $1.19?

[bull....]

lower div's going forward than this yr's 8c by my calc's

[Muse]

How is that calculated? I get $1.19?

1.22 last spot price
(x) 719.509 existing shares outstanding
= 877.8m pre money market cap

plus the $210m raised
= post money market cap of 1087.8

divide that by the post raise # shares outstanding, which is
719.509 + 210 new shares (raised at a dollar) = 929.5

1087.8/929.5 = 1.1703

[Rawz]

1.22 last spot price
(x) 719.509 existing shares outstanding
= 877.8m pre money market cap

plus the $210m raised
= post money market cap of 1087.8

divide that by the post raise # shares outstanding, which is
719.509 + 210 new shares (raised at a dollar) = 929.5

1087.8/929.5 = 1.1703

ah yes of course. thank you

[777]

Or more simply

(6.85*1.22+1.00)/7.85=1.192

I go with Rawz.

[Rawz]

Or more simply

(6.85*1.22+1.00)/7.85=1.192

I go with Rawz.

Yes but I guess the $105m institutional bit isnt factored in doing it this way

[Ggcc]

lower div's going forward than this yr's 8c by my calc's

They should have done this ages ago. I would prefer capital gains over dividends anytime. Currently no tax on capital gains

[Bjauck]

I chose the wrong time to partly rejoin the DRIP! Oz usually chews up Kiwi companies and spits them out. Jeff's skedaddling, not wanting to be in charge should that happen with Heartland?

[Bjauck]

They should have done this ages ago. I would prefer capital gains over dividends anytime. Currently no tax on capital gains

I wouldn’t be surprised if a version of the “fair dividend rate” for low or non-dividend paying companies will be introduced for NZ company share investments by one party or another. Governments have found all sorts of erratic ways around the crazy absence of a general CGT.