Heartland opens $35m share purchase plan

Financial services group Heartland New Zealand is opening a $35 million fully underwritten share purchase plan today.

The fund raising is part of efforts by the company -- formed by the $2.2 billion merger in January of Marac, CBS Canterbury and Southern Cross Building Society -- to raise $58m to maintain acceptable levels of capitalisation, as it intends to buy PGG Wrightson Finance.

Pricing under the share purchase plan will be a discount of 5 percent to the average end of day market price of Heartland shares over the five trading days from August 19, but not higher than 75c per share.

The allotment date of the new shares is expected to be August 31.

Institutional and strategic investors have committed to private placements for the rest of the money being raised.

Heartland shares closed at 59c on Friday.

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