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

 


TOWER sells investments business


TOWER sells investments business

(Auckland – NZ) TOWER Limited today announced that it has sold its investments business TOWER Investments to Fisher Funds for NZ$79 million.

Fisher Funds is a New Zealand owned and operated fund manager and KiwiSaver provider, managing more than $1.4 billion on behalf of more than 130,000 investors.

TOWER Group Managing Director Rob Flannagan said "the decision to sell TOWER Investments was made as a result of a comprehensive strategic review of what is best for TOWER and for TOWER’s shareholders."

"This evaluation was undertaken primarily to identify opportunities for TOWER that would provide value for shareholders," Mr Flannagan said.

The sale follows the divestment of TOWER’s health insurance business to Australian private insurer nib holdings ltd in November.

Mr Flannagan said that "the TOWER Board made the strategic decision to narrow TOWER’s focus. TOWER has entered into arrangements with the purchasers of those businesses to continue to distribute both Investment and Health products providing a seamless service to its customers."

TOWER’s narrower focus will provide more market visibility for TOWER’s strong, ongoing businesses and enable the equity market to better recognise the value of TOWER’s shares. TOWER will continue to assess whether there are opportunities to obtain further value for shareholders following the strategic review undertaken last year.

"The focus for TOWER going forward will be on growing our traditional core insurance business through offering superior products backed by market-leading customer service," he said.

The sale of TOWER Investments to Fisher Funds is on terms customary for a transaction of this type, including that no material adverse change occurs in either TOWER Investments or Fisher Funds prior to Completion. Subject to satisfaction of this condition, Completion is scheduled to occur on 2 April 2013.

Carmel Fisher Managing Director of Fisher Funds commented:

"This is an exciting opportunity for Fisher Funds to participate in the consolidation of a competitive KiwiSaver industry, accelerate our growth, and achieve economies of scale that we can pass on to our clients. We are delighted to have the support of our new shareholder TSB Bank in this acquisition, along with the continued support of existing Fisher Funds shareholders including Morrison & Co."
TOWER Investments has been sold as a stand-alone business with employees transferring across to Fisher Funds with the business.

Mr Flannagan said "an announcement regarding the application of sale proceeds realised from the sale of the investments business will be made in due course."

Shareholders will be asked to approve a proposed return of capital of $120 million following the sale of the health business at TOWER’s annual meeting on 21 March 2013.

He said TOWER Investments, under its new owner, would continue to play an important role in growing the wealth of New Zealanders.

"Over the coming months, TOWER will work closely with Fisher Funds to ensure that investors are provided with the high standard of service they enjoyed with TOWER Investments," Mr Flannagan said.

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news