HGH - Heartland Group Holdings

[Balance]

TRADING HALT!!!

Any speculation? Takeover, non-core debt issues resolved, Profit Upgrade/downgrade?, S&P rating change, Capital raising?

Sp steadily going up, especially in the last week, says it will be a positive announcement.

Merger most likely scenario?

[RTM]

Hope Percy's pulse rate is OK over next few hours....

[Harvey Specter]

Merger most likely scenario?

Given its Valentines day, no doubt someone is courting this very attractive stock. Or is it them doing the courting?

Do doubt it will be a match made in heaven with the deal being consummated once they are well positioned.

[Cool Bear]

better be good. most of my eggs are in that basket. dis bear needs the honey to go into hibernation over winter.

[winner69]

Sp steadily going up, especially in the last week, says it will be a positive announcement.

Merger most likely scenario?

Agree mate

Upward movement in share price = good news

Amazing how many can guess this sort of stuff a few days out from the announcement .....some really canny investors

[winner69]

Unlikely to be anything to do with profit situation or ratings They would have just come out and said this without a halt

Something that requires a bit more detail to finalise (with 3rd party involvement)

[stoploss]

GENERAL: HNZ: Acquisition and Financial Forecasts - Summary 10:48a.m.

HNZ

14/02/2014 10:48

GENERAL

REL: 1048 HRS Heartland New Zealand Limited

GENERAL: HNZ: Acquisition and Financial Forecasts - Summary

NZX Release

14 February 2014

ACQUISITION AND FINANCIAL FORECASTS - SUMMARY

Acquisition

Heartland New Zealand Limited ("Heartland") (NZX: HNZ) advises that it has

entered into a Sale and Purchase Agreement with Seniors Money International

Limited ("SMI") for the acquisition of its New Zealand and Australian Home

Equity Release mortgage businesses. The consideration for the acquisition is

NZ$87 million. The Sale and Purchase Agreement is subject to a number of

conditions being satisfied prior to settlement on 1 April 2014, including SMI

obtaining shareholder approval to proceed with the transaction. See the full

release attached to this announcement for further details of the acquisition.

Capital Raising

Heartland is raising NZ$20 million to partially fund the acquisition. The

capital raising comprises a NZ$15 million equity placement and a NZ$5 million

share purchase plan. Under the share purchase plan, each Heartland

shareholder with an address in New Zealand on the register at 5pm on 27

February 2014 will be eligible to invest up to $15,000 in new Heartland

shares. Further details of the placement and share purchase plan are

included in the attachments to this announcement.

Forecast

Heartland will shortly be releasing its results for the first half of FY2014.

Net profit after tax is expected to be around $16.5 million and in line with

the forecast full year outcome of $34-$37 million for FY2014. Heartland's

forecast for FY2015 is yet to be finalised and more detailed financials will

be available sometime following settlement of the acquisition. Taking all

relevant factors into consideration including acquisition and integration

costs expected to be incurred in FY2015, the underlying business, together

with the contribution from the acquisition, is likely to produce a full year

result for FY2015 of between $42-44 million of net profit after tax. See the

full release attached to this announcement for further details of Heartland's

forecast financial information.

Attached:

1. Acquisition and Financial Forecasts - NZX Release

2. Appendix 7 Notice of Event Affecting Securities

3. Investor Presentation

- Ends -

For further information please contact:

Jeff Greenslade

Managing Director

Heartland New Zealand Limited

DDI 09 927 9149

End CA:00247013 For:HNZ Type:GENERAL Time:2014-02-14 10:48:37

[luigi]

Some interesting background on SMI/Sentinel from 2012:

http://www.stuff.co.nz/business/indu...ntinel-lending

[luigi]

From the announcement:

"The weighted average loan to value ratio (“LVR”) of the New Zealand HER loan portfolio is approximately 32.7%, while the weighted average LVR of the Australian portfolio is approximately 31.8%. "

[False Profit]

First time in the 90cents for HNZ. There you go.