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- Release Date: 03/01/14 18:16
- Summary: ASSET: TWR: TOWER to retain TOWER Life (N.Z.) Limited
- Price Sensitive: No
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TWR
03/01/2014 16:16
ASSET
REL: 1616 HRS Tower Limited
ASSET: TWR: TOWER to retain TOWER Life (N.Z.) Limited
3 January 2014
Market Information
NZX Limited
Level 2, NZX Centre
11 Cable Street
Wellington
New Zealand
Company Announcements Office
Australian Stock Exchange Limited
Exchange Centre
Level 6, 20 Bridge Street
Sydney NSW 2000
AUSTRALIA
TOWER to retain TOWER Life (N.Z.) Limited
TOWER advises that it is to retain TOWER Life (N.Z) Limited, following an
evaluation of options for divesting the business.
Chief Executive Officer David Hancock said TOWER had completed a formal
process with a number of interested parties and had determined that greater
shareholder value would be realised by retaining the business.
The TOWER Life business of 50,000 policies is made up of participating and
non-participating Life insurance policies, annuities and unit linked
insurance policies. Policy and shareholder assets are managed under
Investment Management Agreements operated by a third party.
"TOWER believes there are a number of opportunities to continue to improve
the business performance of the retained life business, and for a release of
capital over time," Mr Hancock said.
Over the past financial year TOWER has sold three businesses realising a
total of $370 million, and in doing so has made a significant cash return to
shareholders. In addition to the $120 million returned to shareholders in
April 2013, a further $70 million is planned to be paid in January 2014
through an off market voluntary share buy back (subject to a number of
conditions). The buy back Offer to shareholders closes on Thursday 23 January
2014.
Mr Hancock said TOWER's focus remained on ensuring shareholders benefitted
from the company's proven ability to maintain an efficient capital structure
while delivering strong returns. "We will continue to look to release capital
to shareholders as and when is appropriate," he said.
ENDS
Michael Boggs
Chief Financial Officer
TOWER Limited
ARBN 088 481 234 Incorporated in New Zealand
End CA:00245801 For:TWR Type:ASSET Time:2014-01-03 16:16:07
