HGH - Heartland Group Holdings

[BlackPeter]

sooner rather than later me thinks.....lots of overhang shares from the cap raise to be sold for a quick profit and to take risk off the table

Sure - but how do you make a "quick profit" if you buy for $1 and sell for the same price (or lower)?

[snapiti]

Sure - but how do you make a "quick profit" if you buy for $1 and sell for the same price (or lower)?

sorry I shall simplify my post for those that struggle with my English!

I suspect once the opportunity of a quick profit is gone much of the overhang will then be sold to take risk off the table......do you comprehend this post BP 

[lorraina]

Heartland announces receipt of final regulatory approvals for Challenger Bank acquisition

Heartland Group Holdings Limited (Heartland) (NZX/ASX: HGH) is pleased to announce that it has received the necessary regulatory approvals from the Australian Prudential Regulation Authority and the Reserve Bank of New Zealand for Heartland Bank Limited's (Heartland Bank) acquisition of Challenger Bank Limited (Challenger Bank) from Challenger Limited (ASX: CGF).

Heartland Bank expects to complete the acquisition of Challenger Bank today, 30 April 2024.

[notmaurice]

Good times ahead imo for those who hold.Was into HGH from the getgo thru having shares in CBS and now another step forward.

[BlackPeter]

sorry I shall simplify my post for those that struggle with my English!

I suspect once the opportunity of a quick profit is gone much of the overhang will then be sold to take risk off the table......do you comprehend this post BP 

I hear what you are saying, if this is what you mean .

Hard, though to comprehend the world of traders and gamblers ...

[Left Field]

More details on the completion of the Challenger acquisition today including personnel changes.

https://www.nzx.com/announcements/430294

Heartland Bank completes acquisition of Challenger Bank

Heartland Group Holdings Limited (Heartland) (NZX/ASX: HGH) is pleased to confirm the completion of Heartland Bank Limited's (Heartland Bank's) acquisition of Challenger Bank Limited (Challenger Bank) from Challenger Limited (ASX: CGF).

Completing the acquisition makes Heartland Bank the first New Zealand registered bank to acquire an Australian authorised deposit-taking institution (ADI). The acquisition is a critical step in Heartland's strategy for achieving its long-term growth ambitions and expansion in the Australian market, where it is already well-established.

Heartland's Australian Reverse Mortgage business, Heartland Finance, is Australia's leading provider of reverse mortgages with 42% market share. Since 2004, Heartland Finance has helped more than 27,500 Australians to live a more comfortable retirement by releasing equity from their homes. Heartland's Livestock Finance business, StockCo Australia, is a leading specialist provider of livestock finance. StockCo Australia has been providing livestock finance solutions to food producers across Australia since 2014, with origins in New Zealand dating back to 1995. At 31 December 2023, Heartland Finance and StockCo Australia together had approximately NZ$2 billion of gross finance receivables.

On 2 May 2024, Heartland will transfer Heartland Australia Holdings Pty Limited and its subsidiaries (which include Heartland Finance and StockCo Australia) (together, Heartland Australia) to Challenger Bank.

The total consideration paid for the acquisition of Challenger Bank was AU$115.7 million and comprised:
1. the total purchase price of AU$46.4 million, reflecting the initial purchase price of AU$36.7 million plus AU$9.7 million of additional consideration due to the deposit raising programme undertaken by Challenger Bank prior to completion, and
2. an additional payment of AU$69.3 million, reflecting the increased capital being held by Challenger Bank following its pre-completion purchase of AU$574.3 million of reverse mortgages from Heartland Australia.

Challenger Bank's deposit raising programme, undertaken prior to completion, positions Heartland well for accelerated growth in Australia. Between 30 December 2023 and 26 April 2024, Challenger Bank achieved retail deposit growth of AU$891.2 million at a rate that is 172 bps lower than Heartland Australia's current cost of funds.

Introducing Heartland Bank (Australia)

From 1 May 2024, Challenger Bank will begin trading as Heartland Bank – a digital specialist bank (Heartland Bank (Australia)).

Drawing on Heartland's expertise in New Zealand, and its successful track-record in Australia, Heartland Bank (Australia) will focus on providing Australians with specialist banking products that are the best or only of their kind, through digital channels. Once Heartland Finance and StockCo become part of Heartland Bank (Australia), it will be Australia's only specialist bank provider of both reverse mortgages and livestock finance.

Expansion will be enabled through access to retail deposits, providing the advantage of a lower cost of funds. As such, Heartland Bank (Australia) will continue to actively raise deposits – its 6-, 9- and 12-month Term Deposit offers are currently market leading.

Leveraging retail deposit funding and Heartland's New Zealand product and distribution expertise, Heartland Bank (Australia) may pursue future opportunities to expand into new product segments, such as Motor Finance and Asset Finance. Heartland has a history of success with these products in New Zealand, and considers these sectors to be underserviced by larger banks in Australia.

Board and Management updates

Heartland Bank (Australia) Board
Heartland is pleased to announce the appointment of the new Heartland Bank (Australia) Board of Directors:
‒ Geoff Summerhayes has resigned from the Heartland Board and has been appointed Chair and Independent, Non-Executive Director of Heartland Bank (Australia)
‒ Shane Buggle, Lyn McGrath (who sat on the Challenger Bank Board prior to Heartland's acquisition), Vivienne Yu and Bruce Irvine (currently Chair and Independent Non-Executive Director of Heartland Bank) have been appointed Independent, Non-Executive Directors of Heartland Bank (Australia)
‒ Leanne Lazarus (currently Chief Executive Officer of Heartland Bank) and Jeff Greenslade (currently Chief Executive Officer and Executive Director of Heartland, and Non-Independent, Non-Executive Director of Heartland Bank) have been appointed Non-Independent, Non-Executive Directors of Heartland Bank (Australia).

The highly experienced Heartland Bank (Australia) Board has a strong level of independence and knowledge of prudential regulatory requirements to drive growth and expansion in Australia. For more information, go to heartlandgroup.info/about-heartland/board-of-directors.

Heartland Bank (Australia) Management
Heartland is pleased to confirm the appointment of Michelle Winzer as Chief Executive Officer of Heartland Bank (Australia) will be effective from 22 July 2024.

Chris Flood has been appointed Acting Chief Executive Officer of Heartland Bank (Australia), effective 1 May 2024 and ceased being a senior manager of Heartland. Chris is expected to return to his role as Deputy Chief Executive Officer of Heartland later in the 2024 calendar year, allowing time for a comprehensive handover with Michelle.

Michelle and Chris will be supported by a management team with extensive experience in banking and financial services. For more information, go to heartlandgroup.info/about-heartland/management.

Heartland Board
Heartland also confirms that John Harvey has been appointed to the Heartland Board as an Independent, Non-Executive Director. John remains on the Heartland Bank Board as a Non-Independent, Non-Executive Director.

Following the announcement on 8 April of her intention to resign, Heartland wishes to confirm that the resignation of Independent, Non-Executive Director, Ellie Comerford, will be effective from 26 June 2024. Ellie has served on Heartland Boards for more than seven years. Heartland Board Chair, Greg Tomlinson, wishes to thank Ellie on behalf of the Heartland Board for her significant contribution, dedication and commitment to Heartland throughout that period, particularly in relation to her experience and associated advice on the Australian market.

Heartland is well progressed in its recruitment of new Australian candidates for the Heartland Board and a further market update will be provided in due course.

[snapiti]

I hear what you are saying, if this is what you mean .

Hard, though to comprehend the world of traders and gamblers ...

I don't think it is that hard,
gamblers= fear + greed x fomo
institutional traders are not so easy to understand but the more you understand how they operate the easier the game becomes.......are we @ $1 yet.....not long to go now me thinks

[winner (n)]

 Só 2 million or so shares crossed

I can hear 'the sell off has begun' echoing across town

[lorraina]

I thought it was the start of "THE BIG BUY UP"as the result of NZ leading broker's target price of $1.72..

[snapiti]

Só 2 million or so shares crossed

I can hear 'the sell off has begun' echoing across town

Very big volume for morning trade...good for shers to get overhang sold

[BlackPeter]

Só 2 million or so shares crossed

I can hear 'the sell off has begun' echoing across town

Interesting - your town seems to have funny echoes. Maybe you should add a bit of grease, oil or spirits ...?

I can only see the depth - even after your cross I see nearly 600k bids of $1 or higher, while the whole sell stack is smaller than that (at an average price of $1.08).

Lots of buyers and less sellers Look like a sellers market to me ;

[Shareguy]

Have been a holder in Heartland since it listed. I have not added it up but confident to say that over that time have had my original cost price well in truely covered with the reliable dividend payments. In my opinion the departing ceo has done a fantastic job in growing and diversafying the business. The Australian opportunity is substantial. If Heartland can grow the Australian business as they have proven in NZ then shareholders will reap the rewards.

In Craig's latest note they say

The retail deposits raised so far are at an average rate that is 1.74% lower than HGH's current average cost of funds in Australia. If this cost of funds differential remains we think it should underpin at least a c$30m improvement in NPAT between FY24 and FY26.

On the earnings call it was stated the change in dividend policy was for this year only with the DRP to continue. Some have concluded (and they may be right) that the lower payout ratio will be continued.

Heartland already have a very strong profitable business in Australia. It's not like they are starting from scratch. Sure there is risks but at the current share price think it's good buying. Yes it could well go down a little more.... But not much I think.

Disc/ Took up all shares and applied for max in CR. Also brought on market today. One of my larger holdings.

[LoungeLizard]

2.5 m shares sold and the SP hasn't budged. Looks like selling/buying parity to me.

It does sound like long term holders are happy with the new SP level. Funny that, only a few weeks ago they might have been horrified...    

[Shareguy]

Looks like a good take up from insiders and then of course another $13m from the chair.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/HBL/430531/417838.pdf

[SCOTTY]

As a long term shareholder with a good sized stake in HGH, I am very happy to be part of this well planned expansion into Australia. Although we have all suffered a big drop in the share price it has allowed us to buy into this long term growth strategy for only $1 per share. Sure, there will be a short term reduction in our dividend but we now have a well capitalised, established, trans Tasman business with I believe huge long term growth potential. Personally I'm very happy and excited to be part of it.