15 Nov 2010

Pyne Gould shareholders to own Heartland Bank shares

12:39 pm on 15 November 2010

Finance firm and fund manager Pyne Gould Corporation is planning to hand over most of its holding in the proposed 'Heartland Bank' to its shareholders.

Marac hopes to merge with the Canterbury and Southern Cross building societies by early February, to create a $2.2 billion lender, and eventually list on the stock exchange.

Pyne Gould Corporation will own about 72% of the new entity. Managing director Jeff Greenslade says the move will boost liquidity in Building Society Holdings Limited (BSHL) by promoting more buying and selling of shares, and encourage interest from institutional investors.

He says it makes sense for PGC shareholders to have direct ownership and of BSHL shares and it helps in creating a diversity of shareholding in the bank, and greater liquidity.

Mr Greenslade says it will sell a small stake to other investors.

He says Pyne Gould is also reviewing what it will do with with the rest of its operations, which include its funds management operations and stake in PGG Wrightson.