Carter Group boss picks up Torchlight stake in Heartland

Thursday 12th July 2012

Philip Carter, of Christchurch property investor Carter Group, has emerged as a major investor in would-be bank Heartland New Zealand after buying an $8 million stake from Pyne Gould's Torchlight Investment Group yesterday.

Carter, who also holds 1.8 percent of Pyne Gould, has built up a 5.4 percent stake in Heartland, after buying 15.4 million shares from Torchlight in an off-market deal, according to a substantial shareholder notice. Between March and July he bought almost 919,000 shares at an average 47 cents apiece to his 4.7 million shares.

Heartland's shares rose 3.9 percent to 53 cents, and have gained 8.2 percent this year. The stock is rated 'outperform' according to the recommendations of two analysts compiled by Reuters, with a median target price of 60 cents.

Though yet to be confirmed, the Torchlight sale comes after the Pyne Gould unit reduced its stake last week, selling 7.5 million shares for $3.75 million in on-market trading. That sale cut Torchlight's stake in Heartland to 7.8 percent from 9.8 percent, and the latest transfer will leave the Pyne Gould unit with about 3.9 percent.

Carter's acquisition makes him the second-biggest shareholder behind Greg Tomlinson, whose Impact Capital was one of the lender's three underwriters in a $35 million capital raise last year.

The National Business Review's rich-list estimated Carter's wealth at $90 million in 2011. Carter is also a director of Christchurch International Airport.

BusinessDesk.co.nz

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