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‘Heartland Bank’ shares debut, quickly fall


Shares in new listing Building Society Holdings opened at 95c on the New Zealand sharemarket but quickly fell away to 88c.

Georgina Bond
Tue, 01 Feb 2011

Shares in Building Society Holdings – forerunner to the ‘Heartland Bank’ – fetched an early premium when they made their sharemarket debut this morning.

After opening on the NZX at 95 cents – the first sharemarket listing of the year - quickly fell to 88 cents, where they finished the trading day.

Building Society Holdings (BSH) listed 300 shares today, with a net tangible asset backing of about $265 million.

Created through the merger of Pyne Gould Corps’ long established Canterbury and Southern Cross buildings societies, and financial services subsidiary Marac -- it’s one of the country’s largest finance companies with assets of more than $2 billion.

Backers have ambitions to turn the company into a registered ‘Heartland Bank’, for which it will have to meet Reserve Bank licensing requirements.

Most of the shares in BSH (72.21%) are held by Pyne Gould Corporation, which is separately listed on the NZX.

PGC has flagged plans to distribute most of that stake in BSH among its shareholders in the first half of this year.

PGC’s largest shareholder is director George Kerr through Pyne Family Holdings, which has about 14%.

BSH’s participation in the Crown's extended retail deposit guarantee scheme was approved last month.

Georgina Bond
Tue, 01 Feb 2011
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‘Heartland Bank’ shares debut, quickly fall
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