Court approves 'Heartland Bank' merger

The $2.2 billion merger proposal to create a New Zealand-controlled listed banking and financial services group moved another step forward when final court orders were granted today.

The merger between Marac, CBS Canterbury and Southern Cross Building Society will create a financial services entity that backers plan to turn into a ‘Heartland Bank’.

The court orders pave the way for the merger to be implemented in early January.

Shares in the merged group holding company, Building Society Holdings Limited (BSHL), will be issued to shareholders of CBS Canterbury (13.04%) and Southern Cross Building Society (14.75%) on January 7.

Most of the shares in BSHL (72.21%) are held by Marac owner Pyne Gould Corporation, which is separately listed on the NZSX.

Listing on the NZX of BSHL is expected to take place on January 31 next year.
 

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Nice to have another NZ bank on the horizon

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While I agree it will be nice to have another locally owned bank, I fell sad for the CBS stakeholders. Their value to this merged business has been seriously compromised.

I am not surprised however. There is a big chance the CBS stakeholders were largely retirees, who have been conned out of monies again.

An excellent sales job undertaken by the merger facilitors.

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Heartless bank more like. Reverse takeover on South Canterbury Finance feeding on the carcass of Hubbards assets.

The proof is in the reserve bank emails and Hubbard biography. George Kerr was at meetings discussing turning SCF into a bank a long time ago. When Allan changed his mind, clearly there were other ideas.

In concept, a NZ bank is a great idea. However the breaching of prinicples to get there doesn't sit well with my core values. Each to their own though.

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Could you spell out these allegations more clearly anon.

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Does it mean more competative mortgage rates for NZers, or too small to make any difference?

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Selfish motivations by Marac are the driving force for this.

Unfortunately due to CBS being so very small they have no other opportunities and certainly would not remain a sustainable business under new regulations in their own right or based on their financial performance/results over the past few years. I guess they were going one way or another, this option just gives Marac and PGC a foot in the bank door a little more.

I also still struggle to see why there's such a big deal made out of the 'Heartland Bank' thing. NZ already has this in SBS Bank and has done very successfully for more than 140 years. NZ / member owned, profitable, gives back to local community & Based in the 'Heartland'.

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