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

 

UPDATE: Vero drops takeover appeal

UPDATE: Vero drops takeover appeal after Tower terminates agreement

(Recasts on Vero appeal, share drop and updates share price)

By Paul McBeth

Nov. 7 (BusinessDesk) - Suncorp Group-owned Vero Insurance has ditched a planned appeal of a rejected takeover bid for Tower after the New Zealand insurer terminated their arrangement. The shares dropped.

Auckland-based Tower terminated a scheme implementation agreement with Vero after the deal passed its end date, but has told the Australian insurer it's willing to discuss new terms once it has raised capital. The $236 million takeover was blocked by the Commerce Commission over competition concerns, and Vero has now decided to drop a planned appeal that was scheduled to be heard in January. The Australian insurer is now focused on "maximising the value" of its 19.99 percent stake in Kiwi firm.

"Tower has advised Vero that it is willing to negotiate a new SIA, which may result in changes to key terms, following completion of its plans to raise further capital," chair Michael Stiassny said in a statement to the ASX yesterday. "The Tower board of directors is continuing to develop plans to raise further capital and will update the market with its full-year results on 14 November."

In May, Tower reported a loss of $8.4 million for the six months ended March 31, narrowing from a loss of $8.7 million a year earlier, as the company struggled with escalating costs from the 2010 and 2011 Canterbury earthquakes. The need for capital and a proposed restructuring shook out competing bids from Vero and Canada's Fairfax Financial Holdings, with the Australian-owned company ultimately winning over the Tower board before the regulator's decision.

Tower shares fell 6.8 percent to 75 cents on the NZX. Vero offered $1.40 a share, trumping Fairfax Financial's bid at $1.17 a share.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 




Digitl: Bumper year ahead for NZ IT sector

Gartner says New Zealand spending on technology products and services will grow 7.4 percent this year. The company’s latest forecast says the market will total NZ$15.3 billion in 2022... More>>



Fonterra: Lifts Forecast Farmgate Milk Price Range

Fonterra Co-operative Group today lifted its 2021/22 forecast Farmgate Milk Price range to NZD $8.90 - $9.50 per kgMS, up from NZD $8.40 - $9.00 per kgMS. This increases the midpoint of the range, which farmers are paid off... More>>

Federated Farmers: NAIT Levy Increases Must Achieve Accurate, User-friendly System
Nobody welcomes extra costs but if OSPRI is to catch-up on under investment in the NAIT platform and deliver on its workability and farmer support, levy increases are probably necessary, Federated Farmers says... More>>



Skoltech: Study Probes Earth’s Turbulent Past To Explain Where Oceans Came From

The origin of water on our planet is a hot question: Water has immense implications for plate tectonics, climate, the origin of life on Earth, and potential habitability of other Earth-like planets. In a recent study in Physical Review Letters, a Skoltech professor and his Chinese colleagues suggest... More>>


Statistics: Household Net Worth Grows In The September 2021 Quarter But At A Slower Pace Compared To March 2021

Household net worth grew by $60.7 billion in the September 2021 quarter compared with the June 2021 quarter, Stats NZ said today. This represents an increase of 2.5 percent, a similar result to the June 2021 quarter, which was up $60.6 billion or 2.6 percent... More>>

TradeMe: Job Market Ends 2021 On A High With Record Number Of Vacancies
The New Zealand job market finished 2021 on a high note, with the ball still firmly in the job hunters’ court, according to the analysis of 69,600 vacancies listed on Trade Me Jobs for the quarter ending 31 December (Q4)... More>>