Tower spin-off clears final hurdle
NZ-based life insurance and investment management firm Tower Group has been given the all-clear to proceed with the spin-off of its Australian Wealth Management (AWM) business following final sign-off in the High Court of New Zealand yesterday.
The green light for the deal reinforces the backing the firm's shareholders gave the initiative on January 25 and allows Tower to now proceed with a scheduled separate listing of AWM on the Australian Stock Exchange on February 14.
Under the proposal, Tower will divest its interest in AWM in exchange for approximately 120 million AWM shares, priced at $1, and a cash payment of $130 million.
The AWM shares will be transferred to existing Tower shareholders and, in consideration, an approximately equivalent value of Tower shares held by the group's existing shareholders will be bought back by Tower and cancelled.
The calculation value will be based on the share price as at the close of business on February 11.
Earlier this week the group announced its managing director, Keith Taylor, would relinquish his role as head of the trans-Tasman company with Tower Australia chief, Jim Minto, to fill the position at the end of the month.
The group is drawing to an close a two year recovery phase that has seen it reverse its not-too-distant woes and will now turn its attention to growing its business, according to recent statements made by group chairman Olaf O’Duill.
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