Suncorp Group’s wholly owned subsidiary, Vero Insurance New Zealand Limited is seeking to acquire all Tower Limited shares at NZ$1.30 ($1.21).
In the first of two announcements to the Australian Securities Exchange (ASX) today, Suncorp said Vero acquired 11.14 per cent of Tower ordinary shares, and in the second said Tower had received a non-binding proposal to acquire 100 per cent.
Suncorp New Zealand chief executive, Paul Smeaton said the proposed acquisition of Tower provided an opportunity to strengthen the firm’s strategic position in the New Zealand insurance market.
“The proposed acquisition would consolidate Suncorp’s position in the New Zealand general insurance market, creating a business with gross written premiums of NZ$1.6 billion,” he said.
“The combined business would generate significant shareholder value through cost efficiencies, as well as reinsurance and technology synergies.”
In 2006, Tower separated its New Zealand and Australian business. The Australian business in 2011 left the ASX to become TAL, a wholly-owned subsidiary of the Dai-ichi Life Group.
