Sydney - Monday - November 15: (RWE Australian Business News) -...

Sydney - Monday - November 15: (RWE Australian Business News) -
Tower Ltd today said it would proceed with the separate listing on the
Australian Stock Exchange of its Australian Wealth Management
businesses, originally announced on September 13.
The decision to go ahead with the spinoff, subject to
shareholder and court approval, followed a review by Caliburn
Partnership Pty Ltd of the proposal.
Tower chairman Mr Olaf O'Duill said, "The board believes the
spinoff of Tower's Australian Wealth Management business would provide a
more focused strategy for each separately listed entity."
Under the proposal, Tower will transfer its Australian wealth
management businesses, comprising Bridges and Tower Trust, into a new
company, Australian Wealth Management Ltd (AWM), in exchange for about
120 million $1 shares in AWM and a cash payment of $130 million.
These 120 million shares in AWM will then be transferred to
existing Tower shareholders and, in consideration, an equivalent value
of Tower shares held by existing Tower shareholders will be acquired and
cancelled via a New Zealand court-approved scheme of arrangement,
requiring shareholder approval.
AWM will be listed on the Australian Stock Exchange and will
undertake a capital raising of about 130 million, by way of a fully
underwritten entitlements offer of additional shares in AWM to make the
cash payment to Tower.
Following the scheme and completion of the capital raising,
Tower will have no equity interest in AWM.
TOWER will use the $130 million proceeds received from AWM to
provide additional capital flexibility in pursuing its strategies for
growth and new business development.
Detailed information regarding the scheme and capital raising
will be provided to shareholders in early December.
A shareholders' meeting to approve the scheme will be held in
late January 2005 and the listing of AWM on the ASX and entitlements
trading is expected to occur in February.
Shares in Tower rose 1c to $2.18 on Friday.
ENDS
!END