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- Release Date: 27/05/14 10:52
- Summary: GENERAL: TWR: TOWER offers opportunity to dispose small shareholdings
- Price Sensitive: No
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TWR
27/05/2014 08:52
GENERAL
REL: 0852 HRS Tower Limited
GENERAL: TWR: TOWER offers opportunity to dispose small shareholdings
27 May 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 offers opportunity to dispose small shareholdings cost effectively
TOWER has today responded to shareholder requests for a cost-effective
solution to disposing of their small parcels of shares in TOWER Ltd (TOWER or
the Company).
TOWER Chairman Michael Stiassny said a number of shareholders had asked the
Company to consider a way for them to dispose of their small holdings without
incurring brokerage fees. This had been highlighted to the Board during the
voluntary share buyback programme earlier this year.
"It was a reasonable request and the Board is very pleased to respond.
Through a share cancellation programme, we intend offering shareholders with
fewer than 200 shares the opportunity to have TOWER cancel them free of any
brokerage charges," Mr Stiassny said.
TOWER shareholders with fewer than 200 shares will have the following three
options:
1. Do nothing if they wish to have their shares cancelled by TOWER without
incurring brokerage or any fees. Payments will be made in the same manner as
dividend payments.
2. Increase their shareholding to more than 200 shares on the market through
any NZX or ASX sharebroker. Applicable brokerage charges will apply.
3. Notify TOWER in writing by filling in an opt-out form if they wish to
remain a TOWER shareholder with a small parcel and return this to
Computershare Investor Services.
Mr Stiassny said the Board wanted to ensure the process was as simple and
fair as possible for small shareholders, and ensure they did not incur costs
that may be disproportionate to the value of their holdings.
"We felt this was preferable to a compulsory on-market acquisition, where
shareholders may incur brokerage costs," he said. "As a result, we have
chosen a cancellation process whereby the cancellation of small parcels by
the Company will be automatic at a known price and with no costs incurred.
However, shareholders are also welcome to either maintain their shareholding
by notifying TOWER or increase their shareholding on the market if they
wish."
TOWER has just over 20,000 shareholders with less than a minimum holding in
TOWER. They represent 41.09% of the company's total share register and own
2.5 million shares, approximately 1.43% of TOWER's current issued share
capital. Many small shareholders are likely to have received these initial
shares as a result of TOWER's demutualisation in 1999.
Mr Stiassny said the programme would also deliver benefits to TOWER through a
reduction in the ongoing costs of servicing shareholders.
Shareholders have three months to make a final decision. Shareholders with
small parcels who do not take either Option 2 or 3 above will have their
small shareholdings automatically cancelled and will receive NZ$1.72 per
share being the volume weighted average price for the five trading days prior
to 27 May 2014, on 1 September 2014.
Shareholders registered on the Australian register will be paid in Australian
dollars at the conversion rate applicable on the trading day prior to the
payment date. All eligible shareholders will receive a letter from TOWER
outlining the options and details in the next week.
ENDS
David Hancock
Chief Executive Officer
TOWER Limited
ARBN 088 481 234 Incorporated in New Zealand
For further information, please contact:
Tracey Palmer
Head of Corporate Communications
Mobile: +64 21 837 860
Email: [email protected]
End CA:00250898 For:TWR Type:GENERAL Time:2014-05-27 08:52:08
