Heartland New Zealand set to bank sound inaugural profit
Heartland New Zealand will open its books on August 19.
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Heartland New Zealand – seeking a banking license for the Heartland Bank – expects to reveal a net profit of between $6 million and $8 million when it open the books on August 19.
The annual result, for the year to June 30, will include hefty one-off costs associated with the recent merger of former Pyne Gould Corporation (PGC) subsidiary Marac Finance and two buildings societies. It will also be weighed down by investment to meet bank standards as it seeks to become a registered bank.
Forecast net profit for the combined business following the intended acquisition of PGG Wrightson Finance, in the 2012 financial year, is expected to be in the range of $20m to $24m.
Heartland is now among the country’s top 50 listed companies.
Shareholders recently received details of its $35 million fully underwritten share purchase plan – key to funding its purchase of PGG Wrightson Finance. It is raising $58 million of capital in order to maintain acceptable levels of capitalisation after the proposed acquisition of PGG Wrightson – a move that will extend its reach into the rural sector.
The capital raising is a combination of private placements, which have been fully committed to by institutional and strategic investors, and the offer to Heartland shareholders under the fully underwritten share purchase plan (SPP).
Shares in Heartland New Zealand last traded at 62 cents.
Georgina Bond
Tue, 02 Aug 2011
Tue, 02 Aug 2011
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Heartland New Zealand set to bank sound inaugural profit
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