Guinness Peat Group has sold its stake in Tower for about $118 million leaving the UK threadmaker Coats as its sole investment and signalling the end of its portfolio divestment.
GPG sold about 69.6 million shares at $1.70 apiece, the company said in a statement to the NZX. That's 5.6 per cent below the level they traded On Friday. Today the stock fell 1.1 per cent to $1.78.
Sources close to the deal said the stake was sold to a range of instutional investors and retail brokers in a block trade over the weekend.
The deal was underwritten by First NZ Capital.
No one party will have a controlling stake but it's understood that several substantial shareholders - those with a stake of a least 5 per cent - are likely to emerge over the next few days.