Heartland in trading halt as Quadrant looks to double its stake
By Suze Metherell
May 7 (BusinessDesk) - 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)