Heartland commences trading on the ASX
Heartland Group Holdings Limited (NZX/ASX:HGH) (Heartland Group) is pleased to announce that it will commence trading today on the Australian Securities Exchange (ASX) under a Foreign Exempt Listing and the ticker HGH.
Heartland Group’s listing on the ASX follows the completion of a corporate restructure whereby Heartland Group became the new parent company of New Zealand registered bank, Heartland Bank, and Australian reverse mortgage provider, Heartland Seniors Finance. A Foreign Exempt Listing on the ASX is expected to expand the capital sources available to Heartland Group in order to provide additional flexibility for future growth opportunities. Heartland Group’s primary listing will remain on the NZX Main Board.
Heartland Bank became a registered bank in 2012, following the merger of four financial service entities. Its strategy is to operate in niche markets where it can provide the ‘best or only’ product and to increase its customer reach through online channels and its intermediary, partner and referrer networks. Heartland Bank’s core areas of focus are small business lending, reverse mortgages, motor vehicle finance, livestock finance and savings & deposits.
Heartland entered the Australian reverse mortgage market in 2014 with the acquisition of reverse mortgage provider, Australian Seniors Finance, which it subsequently rebranded to Heartland Seniors Finance. Since then, Heartland has achieved significant growth in this business, with net finance receivables growing from A$380m at acquisition to A$619m at the end of the 2018 financial year. This growth is not expected to slow down with 20,000 people turning 65 in Australia every month and other major providers of reverse mortgages recently exiting the market.
The restructure and the ASX listing are significant milestones for the group and provide a more suitable platform for future growth. The restructure removes constraints on growth previously arising from Reserve Bank of New Zealand regulations, and will provide greater flexibility to explore and take advantage of future growth opportunities in New Zealand and Australia outside the banking group. A Foreign Exempt Listing on the ASX is expected to expand the capital sources available to Heartland Group in order to fund growth.
At Heartland Seniors Finance, we are excited by the opportunities the restructure presents our business. If you have further questions about the restructure, or how Heartland Seniors Finance can help you live a better retirement, please feel free to contact our friendly team on 1300 889 338 or [email protected]. We are here to help you.
Information provided is accurate as at 1 November 2018 and may change from time to time.