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

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news