HGH - Heartland Group Holdings

[biker]

Buyers at 63c and climbing? What price were these spun off at via PGC?

[Balance]

Buyers at 63c and climbing? What price were these spun off at via PGC?

82 cents - still a long way to go!

[biker]

Thanks balance.A banking licence should change sentiment and see that regained plus IMHO

[Balance]

A banking licence should change sentiment and see that regained IMHO

I am counting on it going to 88 cents, NTA, if it gets the banking license and declares a dividend with a DRP in November's AGM.

Not that many stocks out there you can buy at such a deep discount due to negative sentiment.

[janner]

Would not put to much reliance on a Divie this year though..

[biker]

Not that many stocks out there you can buy at such a deep discount due to negative sentiment.

I agree Balance, and we have just lost another one in FPA.

Heard on the midday news (which means it must be true) that buyers have already expressed interest in buying 'some divisions' of FPA. It was a spokesman for Haier or FPA talking. not sure which.
I would imagine HNZ would have at least expressed interest in FPF.

[biker]

Haier may sell FPA Finance if bid succeeds
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Haier may sell FPA Finance if bid succeeds
Wed, 12 Sep 2012 11:57a.m.
Haier has signalled the possible sale of Fisher & Paykel Appliances' finance unit if it succeeds in its bid for control of the Auckland-based company.

Shares of FPA jumped about 13 percent to $1.17 on the NZX on Wednesday, nearing the $1.20-a-share offer price as investors concluded it will be hard for a rival bidder to emerge given Haier has already sewn up about 37 percent of the target company.

The "potential divestment of the Fisher & Paykel Finance business" is listed among possible changes in Haier's takeover notice.

"It will come down to whether they feel finance is a core activity or whether other people would be prepared to pay a higher price than what they think it is worth," said Craig Brown, senior investment analyst at OnePath.

In the year ended March 31, the finance business generated $37.8 million of normalised earnings before interest and tax, more than three times the $11.3 million FPA earned from appliances.


FPA sees a recovery this year, with operating earnings from appliances of $35 million to $40 million, and earnings of $35 million to $38 million from the finance unit, whose products include the Farmers Finance Card and the Q card.

Chinese manufacturer Haier, FPA's biggest shareholder with about 20 percent, is aiming for a minimum 50 percent acceptance and has agreement from Allan Gray Australia to sell its 17.46 percent into the offer, giving Haier an interest in 37.46 percent.

That "will make it difficult for anybody else to come in and gazump them," OnePath's Brown said.

"The key thing in the bid is that it's only conditional on getting to 50 percent," said Matthew Goodson, portfolio manager at BT Funds Management. With Allan Gray's stake locked up "$1.20 might get them there."

The cash offer represents a 63 percent premium over FPA's stock price of 75 cents on Friday, before Haier disclosed its interest on Monday.

NZN



Read more: http://www.3news.co.nz/Haier-may-sel...#ixzz26DGV0BIu

[Arbitrage]

Will we see HNZ at 60c again?

[percy]

Will we see HNZ at 60c again?

Thought it may have tested 59cents/60 cents,but the SP has stayed up/increased on very good volume.
There was a very good article on HNZ in www.chrislee.co.nz Market News last night.
"Sale of FPF will confirm the current market value of net lending assets and balance sheet equity in the finance sector,which is unlikely to be at the discount currently ascribed to HNZ share on the market."
I feel all of us holding HNZ look forward to either HNZ merging with FPF or being rerated to trade on similar multiples.

[Snoopy]

Thought it may have tested 59cents/60 cents,but the SP has stayed up/increased on very good volume.
There was a very good article on HNZ in www.chrislee.co.nz Market News last night.
"Sale of FPF will confirm the current market value of net lending assets and balance sheet equity in the finance sector,which is unlikely to be at the discount currently ascribed to HNZ share on the market."
I feel all of us holding HNZ look forward to either HNZ merging with FPF or being rerated to trade on similar multiples.

I believe the valuation of HNZ must ultimately be dependent on supply and demand for its lending services.

The best interest rate link from the sharechat website puts me through to: http://www.depositrates.co.nz/

Heartland has a call rate of 3.75%, a 90 day rate of 4.5% and a 12 month rate of 5%. These are of course leading rates that apply to new term deposits and those that are rolling over. Customers can get higher call rates at BNZ and ANZ/National. Heartland are higher than the best of the big banks (Westpac by 0.5%) on a 3 month term. Heartland are 0.5% higher than the best of the big banks (BNZ) on a 12 month term.

I am not convinced that I would put my hard eaned deposit money with Heartland for only a 0.5% premium, given its much lower credit rating. I do not believe that Heartland is yet demonstrating the growth in demand for its services is there to sustain firstly a higher profit and as a result a higher share price.

SNOOPY