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- Release Date: 13/09/12 10:36
- Summary: GENERAL: TWR: TOWER considers proposals for delivering value to sharehold
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TWR
13/09/2012 08:36
GENERAL
REL: 0836 HRS Tower Limited
GENERAL: TWR: TOWER considers proposals for delivering value to sharehold
TOWER considers proposals for delivering value to shareholders
(Auckland - NZ) TOWER Limited today announced it is considering a number of
proposals with interested parties after completing a strategic review.
The review was overseen by the TOWER Board and was undertaken by senior
management supported by Goldman Sachs.
TOWER Group Managing Director, Rob Flannagan, said it was the Board's view
that TOWER's strength was not reflected in the market price for TOWER shares
at a time when the company had achieved strong financial results and had
strengthened operational efficiency.
While TOWER had outperformed the New Zealand market since its separation from
TOWER Australia, it was the Board's view that more shareholder value could be
created, Mr Flannagan said.
"To this end the Board is open to changing TOWER's business structure to
improve the value achieved for shareholders and is considering proposals
including operational alliances and divestment of assets.
"At this point, there is no expected outcome from the exercise, and any such
transactions would need to make sound business sense before being
progressed", he said.
An important consideration was to ensure that TOWER's policy holders were
unaffected by any change and could continue to rely on the cover they have
contracted with TOWER, Mr Flannagan said.
Announcements about the propositions being investigated would be made if they
represented realistic options for the company, he said.
"It's in the best interests of shareholders to consider some of the proposals
that have been put on the table. All proposals are being tested against
TOWER's overriding objective which is to create value for shareholders."
Mr Flannagan said TOWER expected the processes with interested parties to be
completed by the AGM in February next year. Until then, the focus for TOWER
is on "business as usual".
TOWER Chairman, Bill Falconer, whose current term expires next February, has
decided to step down now to enable a new Chairman to implement the
initiatives emanating from the strategic review.
Mr Flannagan said the process of Board renewal was ongoing and the company
was well resourced to assess and implement the opportunities flowing from the
strategic review while actively managing its business operations.
Independent Board Member, Steve Smith, has been appointed as Interim
Chairman.
Ends
For further information, please contact:
Rob Flannagan
Group Managing Director
TOWER Limited
Tel: +64 9 369 2057
ARBN 088 481 234 Incorporated in New Zealand
End CA:00227243 For:TWR Type:GENERAL Time:2012-09-13 08:36:32
