TWR
15/09/2014 11:05
BUYBACK
REL: 1105 HRS Tower Limited
BUYBACK: TWR: TOWER completes small shareholding buyback scheme
15 September 2014
Market Information
NZX Limited
Level 2, NZX Centre
11 Cable Street
Wellington
New Zealand
Company Announcements Office
Australian Securities Exchange Limited
Exchange Centre
Level 6, 20 Bridge Street
Sydney NSW 2000
Australia
TOWER completes small shareholding buyback scheme
For the purposes of Rule 7.12.1 of the Main Board Listing Rules, TOWER
Limited (NZX/ASX: TWR) announces that it has completed its small shareholding
buyback scheme, announced on 27 May 2014, which enabled shareholders with
fewer than 200 shares to have their shareholdings bought back and cancelled
without incurring brokerage.
Under this scheme, TOWER bought back and cancelled 2,395,681 ordinary shares
(ISIN: NZTWRE0011S2) at NZ$1.72 per share, for a total consideration of
$4,120,571. This represents 1.34% of TOWER's outstanding ordinary shares on
issue. Following the cancellation TOWER has 175,749,449 shares on issue.
The buyback and cancellation of small holdings was carried out following
requests from shareholders for a cost-effective solution to dispose of their
small parcels of shares in TOWER. This had been highlighted to the Board
during the voluntary share buy-back programme earlier this year.
On 11 June 2014, TOWER posted to shareholders with fewer than 200 shares, a
letter outlining their options which included details for disposing of their
holdings, increasing their holdings to above the 200 share threshold, or
opting out from the buyback scheme and retaining their shareholding.
Shareholders were provided with three months' notice to make a decision in
respect of their small shareholdings, which expired on Friday 12 September
2014.
In addition to providing a fair and low cost method for small shareholders to
dispose of their shares, the buyback scheme will also deliver benefits to
TOWER through a reduction in the ongoing costs of servicing shareholders. In
this regard, the cancellation of small holdings has resulted in the total
number of shareholders reducing by 19,193 to 29,718. No shares are being held
as treasury stock.
On 4 September 2014, NZX issued a determination confirming that TOWER may
continue to treat 200 shares as a minimum parcel notwithstanding that its
share price exceeds $2.00.
Payments for the shares bought back and cancelled will be made in cash on 17
September 2014 in the same manner as dividend payments.
Shareholders registered on the Australian register will be paid in Australian
dollars at the conversion rate applicable on 16 September 2014.
ENDS
David C Hancock
Chief Executive Officer
TOWER Limited
ARBN 088 481 234 Incorporated in New Zealand
For further information, please contact:
Julia Belk
Head of Capital and Investor Relations
Phone: +64 9 925 0034
Email: [email protected]
End CA:00255242 For:TWR Type:BUYBACK Time:2014-09-15 11:05:03
