HGH - Heartland Group Holdings

[silu]

Q1 Disclosure Statement

Unaudited net profit after tax (NPAT) for Heartland was $16m for the three
months ended 30 September 2017, an increase of 12% from the corresponding
three month period in 2016.

The result was driven by continued growth in net finance receivables across
all divisions. Net finance receivables grew $138m to $3,684m, which equates
to 16% annualised growth (4% growth for the three month period).

Heartland expects underlying asset growth to continue during the remainder of
the 2018 financial year, and is pleased to reaffirm its forecast range for
NPAT for the 2018 financial year of $65.0m to $68.0m.

Rights Issue

To support continued growth in its loan portfolio and maintain a strong
balance sheet, Heartland is seeking to raise up to approximately $59 million
of new equity under a pro rata rights issue.

Key details:
o 1 for 15 pro rata rights issue
o Issue price of $1.70 per share, being a 10.1% discount to the closing price
on 8 November 2017 and a 9.5% to the theoretical ex-rights price (TERP)
o Open to New Zealand and Australian shareholders, as well as institutional
shareholders in Hong Kong, Singapore, the United Kingdom and Norway
o Open from 23 November 2017 to 8 December 2017 (unless extended)
o Any rights not taken up will be sold under a shortfall bookbuild
o Shareholders who take up their rights in full may participate in the
shortfall bookbuild
o The offer is not underwritten
o Rights will not trade on the NZX Main Board

[percy]

Pleasing to see such a strong growth rate,which must be supported by more capital.
A rights issue.This is just so much fairer than the previous placements and SPPs.
I think we must thank The NZ Shareholders Assn for this.Maybe a pity the rights are not tradeable,although this will not affect me,as I will be taking up all our rights.
I am not sure whether I will bother with the shortfall bookbind.

[suse]

Ok I dont know what a rights issue is. Can someone enlighten me? did a bit of a google but need a bit more explanation. So if I have 90k shares I can buy another 10kodd shares for $6k?? But I cant trade those shares? Does this mean the share price will fall as there are going to be more shares. Can I sell my rights?

[winner69]

Ok I dont know what a rights issue is. Can someone enlighten me? did a bit of a google but need a bit more explanation. So if I have 90k shares I can buy another 10kodd shares for $6k?? But I cant trade those shares? Does this mean the share price will fall as there are going to be more shares. Can I sell my rights?

Having 90k shares means your are entitled to buy another 6k shares at $1.70

These shares will be the same as any other shares and you can do what you want with them.

If you do nothing you keep your 90k shares and might get a bit of bonus payment when they do this shortfall bookbuild.

You can’t sell your rights ...but as above could end up with a bit of a cash bonus at the end of the process.


What happens to the share price after the raising is completed is anybody’s guess but in a few months time nobody will care / notice anyway .....even if you end up with a lower share of the company by not taking up the rights.

[silu]

fwiw I was just about to sell all my HBL holdings but by the look of things they are tracking along nicely and if I take my rights up and wait for a couple of more months I'm sure I'll be happy.

[iceman]

HBL's market cap is $987.8 mil.
Forget the price ANZ sold ? UDC for.If it was between $450 and $650mil, HBL would need to raise a lot of capital.
The market would welcome it, as the combined business would be great.
However, the longer any deal is delayed the less HBL requires UDC, as HBL have plenty of organic growth,something the Aussie banks ,or UDC,don't have.
So HBL will never pay anything like the Chinese would.
And no HBL would never get away with another quick placement and SPP.

Agreed. This is how it should be done. Well done the Shareholders Association and Heartland for listening. Needless to say, I will be taking all of mine up.

[percy]

fwiw I was just about to sell all my HBL holdings but by the look of things they are tracking along nicely and if I take my rights up and wait for a couple of more months I'm sure I'll be happy.

Should you decide to hang onto them for the next 4 or 5 years, you will end up going from happily "well positioned" to a state of "bliss".
I have already entered this state of "bliss" and it is most agreeable.

[silu]

Should you decide to hang onto them for the next 4 or 5 years, you will end up going from happily "well positioned" to a state of "bliss".
I have already entered this state of "bliss" and it is most agreeable.

That's quite a vote of confidence there percy. I've only been a holder since February this year but judging by the returns so far I upgrade my mood levels to "on the road to bliss".

[winner69]

Probably leaving the upgraded guidance to $68m to $71m until after Christmas

[iceman]

Probably leaving the upgraded guidance to $68m to $71m until after Christmas

I was waiting for this from you winner :-) I agree I think we may see an upgrade soon-ish.