TOWER considers proposals for delivering value

Published: Thu 13 Sep 2012 12:30 PM
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.

Next in Business, Science, and Tech

Snail's pace: Aucklanders face frustrating commute over Harbour Bridge
COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy
By: Statistics New Zealand
Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate
By: Joint Press Release
Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea
By: Ministry For Primary Industries
New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand
By: IDC New Zealand Ltd
Public Transport Distancing Requirements Relaxed
By: Ministry of Health
New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs
By: New Zealand Hemp Industries Association Inc
One In 14 Employed People Report High Risk Of Losing Jobs
By: Statistics New Zealand
ASB Quarterly Economic Forecast Shows NZ Economy Doing Better Than Expected, But Challenges Remain
Live Export Ship Carrying 5,800 New Zealand Cows Goes Missing In East China Sea
FMA Releases Report Into Active And Passive Fund Management
By: Financial Markets Authority
Engineers Assess Damage To Auckland Harbour Bridge After Truck Strike
By: NZ Transport Agency
Motorists Urged To Avoid Damaged Auckland Harbour Bridge
By: NZ Transport Agency
Harbour Bridge: Public Transport A Great Option And Plan Ahead
By: Auckland Transport
Second Harbour Crossing Needed Now, More Than Ever
By: New Zealand National Party
View as: DESKTOP | MOBILE © Scoop Media