Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


nib completes acquisition of TOWER Medical Insurance NZ

ASX Announcement

Date 30 November 2012

Subject nib completes acquisition of TOWER Medical Insurance in New Zealand

nib holdings limited (nib) today announced it has completed the acquisition of TOWER Medical Insurance Limited (TOWER Medical), New Zealand’s second-largest health insurer. nib announced the acquisition of TOWER Medical from TOWER Limited (ASX: TWR, NZX: TWR) on 2 November 2012.

The purchase price of approximately NZ$103.1 million (approximately AU$81.3 million) comprises the headline purchase price of NZ$101.6 million plus an estimated increase in net tangible assets of approximately NZ$1.5 million for the month of October. TOWER Medical has approximately NZ$10 million in surplus capital. The purchase price may be further adjusted following preparation of completion accounts.

The purchase price represents an acquisition multiple of approximately 7.0x pro-forma NPAT1 for the 12 months ended 30 September 2012.

nib has received all necessary regulatory approvals, while conditions precedent in respect to the purchase of TOWER Medical have also been satisfied.

nib’s Managing Director, Mark Fitzgibbon, said: “based on the purchase price the acquisition will be earnings per share accretive from year one."

“We’re excited about our prospects in New Zealand. We’ve acquired a very good business and we’re confident it will provide us with a solid platform for growing private health insurance participation in New Zealand and our market share,” Mr Fitzgibbon said.

TOWER Group Managing Director Rob Flannagan said today that all conditions of the sale had now been satisfied.

“TOWER and nib look forward to building a long-term distribution relationship that will deliver benefits to health customers through the insights, expertise and strong track record in medical insurance that nib will bring to the New Zealand market,” he said.

The acquisition of TOWER Medical will be funded through existing surplus capital and a NZ$70 million senior debt facility.

ENDS

1 Pro-forma NPAT of approximately NZ$14.7 million based on statutory NPAT of NZ$13.2 million and pro-forma adjustment of approximately NZ$1.5 million after-tax reflecting re-allocation of corporate costs.


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news