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

 

Tower trading halt before capital raise, earnings loom

Tower in trading halt pending capital raise, earnings loom

By Paul McBeth

Nov. 13 (BusinessDesk) - Tower shares have been halted ahead of tomorrow's annual earnings announcement, where the general insurer will unveil details to raise new capital.

The Auckland-based company last week said it planned to raise new capital when terminating a takeover deal with Suncorp Group's Vero Insurance, with the two insurers preparing to appeal a rejection of their transaction by the Commerce Commission earlier this year.

"The trading halt has been put in place as Tower Limited is at an advanced stage of finalising underwriting for a capital raising to be announced with its audited financial results on 14 November 2017," NZX said in a note to the exchange. "It wishes to ensure an orderly market while the offer terms, and sub-underwriting pricing and allocations with market participants, are finalised in the next few hours."

Tower's need for more capital emerged as it struggled to cope with escalating costs from the 2010 and 2011 Canterbury earthquakes, and a proposed restructure carving out of those liabilities into a separate entity shook out two suitors. Suncorp's Vero ultimately beat out Canada's Fairfax Financial Holdings in a bidding war for Tower, offering $236 million, or $1.40 a share, but was blocked by the regulator over fears it would stifle competition.

The insurers had planned to appeal that ruling, but Vero walked away when Tower terminated their arrangement, while leaving the door open for it to be renegotiated.

Tower's shares fell 1.9 percent to 76 cents before the halt was announced.

(BusinessDesk)


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: Body massages and Uber are in, DVDs are out, says Stats NZ

Statistics New Zealand has rejigged the consumers price index basket in its latest three-year review, adding body massages, Airbnb and Uber and removing DVD and Blu-Ray players…More>>

ALSO:


StuffMe: Commerce Commission Welcomes Dismissal Of Merger Appeal

In a summary of their judgment released today, Justice Dobson and lay member Professor Martin Richardson dismissed the appellants’ process criticisms and found the Commission was entitled to place significant weight on the prospect of reduced quality of the products produced by the merged entity. More>>

ALSO:

Digital Futures: New Chief Technology Officer Role Created

Communications Minister Clare Curran has called for expressions of interest for the new role of Chief Technology Officer position to help drive a forward-looking digital agenda for New Zealand. More>>

Real Estate: NZ house sales slump in December but prices still firm

The number of property sales across New Zealand slumped 10 percent in December from a year earlier but prices continued to lift, according to the Real Estate Institute. More >>

ALSO:


Dry: Beef + Lamb Launches Drought Resources

The resources include a fact sheet outlining strategies to manage and mitigate the effects of drought, coping with stress on the farm and advice on feed requirements and animal welfare during the dry period. More>>

ALSO:

InternetNZ: Net Neutrality Failure In US "Will Hurt All Users"

InternetNZ Chief Executive Jordan Carter has condemned the decision by the United States communications regulator to undo 2015 open Internet rules, warning that all Internet users will end up worse off as a result. More>>

ALSO: