Heartland Group Holdings Limited (ASX: HGH) is on track to acquire Challenger Bank, marking a significant move in its Australian expansion, pending final nods from APRA and RBNZ. This move is supported by a NZ$210 million equity raise, split evenly between a placement and an entitlement offer, essential for final regulatory approval. The funds are earmarked for the acquisition costs, regulatory capital needs, and asset growth.
Post-acquisition, Heartland Australia will merge into Challenger Bank, making it a unique specialist in reverse mortgages and livestock finance in Australia. This acquisition not only extends Heartland's footprint but also leverages Challenger's deposit-gathering prowess, which has already seen substantial growth. Amidst these strategic developments, Heartland anticipates maintaining a 50% dividend payout ratio for FY 2024 and announces significant leadership transitions, including CEO Jeff Greenslade's planned departure and several board and executive appointments to drive the next growth phase in Australia.
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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
