CORRECT: Heartland in trading halt as Quadrant looks to sell

CORRECT: Heartland in trading halt as Quadrant looks to sell its 9% stake

(Corrects Quadrant from buying 9% stake to selling)

By Suze Metherell

May 7 (BusinessDesk) - Shares of Heartland New Zealand are in a trading halt as Quadrant Private Equity looks to sell its near 9 percent stake in the bank formed from the merger of Marac Finance with Southern Cross and Canterbury building societies one month after buying it.

The Australian private equity firm, via brokerage First NZ Capital, has put in a block order "in respect of the approximately 9 percent" of the Christchurch-based lender, Heartland said in a statement to the stock exchange. The move comes a month after Quadrant first took its 8.75 percent stake in the bank, buying 41.1 million shares at $1.27 a piece, or $52.2 million, substantial shareholder notices show.

Heartland shares last traded at $1.31, indicating a value for Quadrant's stake of $53.9 million. The bank will stay in a trading halt until completion of the offer.

The lender is targeting expansion through niche markets, particularly in the consumer finance sector. Last year it bought a reverse mortgage business from Seniors Money International, which counted Quadrant as its biggest shareholder, for $87 million. It has also taken a 10 percent stake in peer-to-peer lender Harmoney Corp for $3.5 million to accelerate growth. The lender estimates its stake in Harmoney is now worth $5 million. Some $17 million has been lent through the online platform.

(BusinessDesk)

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