Tomlinson becomes Heartland's biggest shareholder after PGC sell-down

Monday 9th July 2012 2 Comments

South Island businessman Greg Tomlinson has become the biggest shareholder in would-be bank Heartland New Zealand after Pyne Gould Corp sold down its holding last week.

Harrogate Trustee and Tomlinson increased their stake in Heartland to 8.8 percent after buying 4.2 million shares for a total $2.1 million between April 10 and July 6, according to a substantial shareholder notice.

That means, after Pyne Gould's sell-down last week to 7.8 percent, Tomlinson is now the lender's biggest investor. Pyne Gould cut its stakes in Heartland and rural services firm PGG Wrightson as it faces an investigation by the market regulator over its related party loans.

Tomlinson's Impact Capital private equity firm was one of three underwriters for Heartland's $35 million share purchase plan last year.

Heartland's shares were unchanged at 51 cents today, and have gained 4.1 percent this year. The stock is rated 'outperform' according to the findings of two analysts compiled by Reuters, with a median target price of 60 cents.

BusinessDesk.co.nz

Comments from our readers

On 9 July 2012 at 3:50 pm Victoria Beck said:

I have been a longterm depositer with the former Southern Cross Building Society. Should I be worried about all these comings and goings and such types of investors who hold sway over my capital? Holding onto capital is difficult based on what has occurred with finance companies, recalcitrant and not-up-to-it board members. Can those more knowledgeable than me give me some opinions please...I would never bother with a financial adviser again.

On 12 July 2012 at 9:38 am Peter said:

I would be encouraged if I were you. I note that a prominent Canterbury family just bought 20 million shares in Heartland- that's about a $10m commitment. It's beginning to look like this organisation, provided it is managed with prudence has the makings to eventually become a major financial institution.