Heartland trumps Turners in bid for MTF cornerstone stake

Published: Tue 13 Oct 2015 05:54 PM
Heartland trumps Turners in bid for MTF cornerstone stake
By Paul McBeth
Oct. 13 (BusinessDesk) - Heartland New Zealand, the listed bank, says it may offer to pay 30 percent more than financial services firm Turners to buy a cornerstone stake in auto-financier Motor Trade Finances.
The Auckland-based lender says it may pay $1.50 a share for between 10 percent and 20 percent of Dunedin-based MTF, and reaffirmed its interest in a full takeover provided it can reach agreement with the finance company's board, it said in a statement after the close of trading. The offer trumps Turners' offer to buy up to 20 percent of MTF at $1.15 a share, which closes at the end of this week. MTF's shares last traded at 99 cents on the ShareMart system.
"An initial cornerstone acquisition demonstrates Heartland’s commitment to making a full takeover offer for MTF," Heartland said. "It would also provide a platform to enable Heartland to offer its broader range of finance products (including insurance, operating lease, plant and equipment, livestock, marine and unsecured personal finance products) through MTF’s originating shareholders."
Last month, MTF told shareholders to wait for an updated valuation before accepting the Turners offer, saying an internal valuation last year valued the company's shares for non-originating shareholders at $1.16 apiece, and was "substantially higher for active shareholders" who also receive extra commission due to their relationship with the lender.
MTF said it would engage with both suitors and take advice on issues raised by the two approaches.
Heartland said MTF shareholders who've accepted Turners' bid can change their mind under the cooling off period required under law.
The bank's shares fell 0.8 percent to $1.18, and have gained 5.3 percent this year.
Independent, Trustworthy New Zealand Business News
The Wellington-based BusinessDesk team provides a daily news feed for a serious business audience.
Contact BusinessDesk

Next in Business, Science, and Tech

Westpac NZ Warns About Sophisticated New Scam
By: Westpac New Zealand
Campaign For New Zealand Coastal Tankers Says Fuel Security At Risk
By: Joint Press Release
Travel Bubble With Cook Islands Resumes Today
By: Cook Islands Tourism Corporation
September South Island Windstorm Cost $36.5 M Raises 2021 Extreme Weather Claims Total To $321.6 M
By: Insurance Council of New Zealand
Building Consents Hit New Highs In November
By: Statistics New Zealand
Fonterra Revises Milk Collection Forecast
By: Fonterra
View as: DESKTOP | MOBILE © Scoop Media