Heartland shares sink after completion of insto raise
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The news: Shares in Heartland Group lowered on the ASX after the completion of its institutional entitlement offer and underwritten placement component of its NZD210 million ($201 million) equity raise.
The numbers: Heartland shares dropped 6.25% to $1.05 by 1:30pm AEDT.
The institutional offer and the underwritten placement raised gross proceeds of NZD131 million from existing and new institutional shareholders. The retail component of the entitlement offer will open on 11 April.
On Monday, the Auckland-based bank announced that it had received indicative regulatory approval for its acquisition of Challenger Bank.
The regulatory approvals are conditional on a NZD210 million equity raise, by way of a NZD105 million placement, together with an NZD105 million accelerated non-renounceable entitlement offer. The placement and entitlement offer would be at a fixed price of NZD1 per new share.
The context: The deal is expected to complete by 30 April, while Auckland-based Heartland said it will transfer Heartland Australia and its subsidiaries to Sydney-based Challenger on 2 May.
As part of Monday's announcement, Heartland confirmed that its CEO Jeff Greenslade intends to step down at the end of the calendar year, having led the bank since its formation in 2011.
The source: ASX announcement
