HGH - Heartland Group Holdings

[Crackity]

I quite like this merger / acquisition

Unfortunately I don't own any HGH

Hmmm

[Plata]

Synergies and strategy mismatch aside, the equity component was well above pre announcement market price and the standalone PE ratio implied seems fair enough too. I don't really have faith in management to realise the full synergies  and integration costs will probably go overbudget (pessimistic view here) however I reckon they'll capture at least some of them. And thats all they really need to make a fair PE ratio start becoming bargain level.

Scale is the name of the game it seems in banking, just got to make sure TSB gets properly digested

[Left Field]

I bought back in yesterday.

Happy to be a HGH holder again (and new TSB holder.)

FWIW I've banked with TSB for over 20 years and found them excellent to deal with.

ps Good article on the merger here..... https://www.capitalissues.co/p/heartland-and-tsb

[Red Baron]

Scale is the name of the game it seems in banking, just got to make sure TSB gets properly digested

I vonder eef you are looking at zhis right.

Merged entity 'TSB Heartland Bank' not 'Heartland TSB Bank'
Location of head office of merged entity Taranaki, not Auckland

TSB Asset base (pre-merger): $NZ9.5b
Heartland Asset Base (pre-merger): $NZ5.6b + $A2.5b = $NZ8.5b (approx)

Zo TSB eez ze larger bank.   

Cash vinancing of deal:  $264m vendor loan provided to Heartland by Toi Foundation (TSB controlling shareholder)

Conclusion:  Reverse takeover by TSB of Heartland to gain a back door listing?

RB