Heartland Bank one step closer
The $2.2 billion merger proposal to create a New Zealand controlled listed bank and financial services group took another big step forward when final court orders were granted.
Friday, December 17th 2010, 7:06AM
The court orders pave the way for the early January merger and for shares in the merged group holding company, Building Society Holdings Ltd., to be issued to shareholders of CBS Canterbury (13.04%) and Southern Cross Building Society (14.75%) on January 7.
At the close of business today CBS Canterbury shares will de-list from the NZAX and trading in Southern Cross shares will cease.
The balance of the holding in BSHL is held by Pyne Gould Corporation (PCG), which has a separate NZSX Listing.
NZSX listing for BSHL is expected to take place on January 31. PGC has said it intends to distribute the majority of its BSHL holding to shareholders and place the balance. The distribution is expected in the first half of 2011 and will remove PGC as the dominate shareholders and broaden the BSHL investor base.
BSHL managing director Jeff Greenslade said, "Staff and boards of all three organisations have worked tirelessly to get this merger across the line. The merger brings us scale through a nationwide presence and established a platform for growth. It also improves our chances of an investment grade credit rating and to successfully gain banking registration from the Reserve Bank."
"It is our belief that the benefits of scale, access to cheaper sources of funding and the ability to promote asset growth will drive increased profitability and superior shareholder returns."
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