Heartland in trading halt as Quadrant looks to double its stake

Thursday 7th May 2015

Shares of Heatland New Zealand are in a trading halt as Quadrant Private Equity looks to double its stake in the bank formed from the merger of Marac Finance with Southern Cross and Canterbury building societies.

The Australian private equity firm, via brokerage First NZ Capital, has put in a block order to buy 9 percent of the Christchurch based lender, which will double its holding to 17.75 percent, Heartland said in a statement to the stock exchange. The move comes a month after Quadrant first took an 8.75 percent stake in the bank, buying 41.1 million shares at $1.27 a piece, or $52.2 million, substantial shareholder notices show.

Heartland shares last traded at $1.31, indicating Quadrant could pay up to $55.4 million for the 42.3 million shares. The bank will stay in a trading halt until completion of the offer.

The lender is targeting expansion through niche markets, particularly in the consumer finance sector. Last year it bought a reverse mortgage business from Seniors Money International, which counted Quadrant as its biggest shareholder, for $87 million. It has also taken a 10 percent stake in peer to peer lender Harmoney Corp for $3.5 million to accelerate growth. The lender estimates its stake in Harmoney is now worth $5 million. Some $17 million has been lent through the online platform.

BusinessDesk.co.nz

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