Tower grabs slice of Mawson
Trans-Tasman financial services groupTowerhas purchased a minority stake in the Mawson Group financial planning dealership just days after announcing a massive writedown of its existing financial planning business, Bridges Financial Services.
In a move the acting chief executive of Tower Australia Jim Minto says will improve the group’s position in the wealth market, Tower paid an as yet undisclosed sum for a 16 per cent shareholding in the Mawson Group.
“The opportunity to participate in a dealership which has a proven growth track record should improve both of our respective positions in the wealth market,” Minto says.
Last week, Tower revealed a $32 million writedown of Bridges Financial Service, a financial planning business it had paid $168 million for in late 2000.
The writedown, the result of re-valuation of Bridges by Deutsche Bank, pushed Tower towards a $68.9 million loss for the year to September 30, 2002, its first ever loss as a listed company.
The Mawson Group, founded in 1990, has a network of 295 financial planners advising across a range of life insurance, superannuation, funds management, master trust, general insurance and stock broking products.
The group’s executive chairman, Peter Johnson, says Tower’s interest would bring a welcome capital injection to the business.
"Our relationship with Tower will provide capital for continued growth and service development in a rapidly changing environment, while at the same time retaining our independent positioning,” he says.
Minto says Tower will take a hand-off approach to the running of the Mawson Group.
“We recognise that the Mawson Group is a fiercely independent company. This is key to much of their success and Tower’s purchase of a minority interest will certainly not alter its way of doing business,” he says.
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