KEY POINTS:
Listed corporate raider and strategic investment company Guinness Peat Group PLC is quitting its stake in Tower Australia Group Ltd, and says it will sell its entire 29.7 per cent shareholding - 100,351,041 shares - to the The Dai-ichi Mutual Life Insurance Company.
The transaction consists of three tranches:
- 50,289,979 (14.9 per cent) shares have been sold unconditionally at a price of A$3.75 ($4.81) per share;
- 16,875,832 (5.0 per cent) will be sold subject to approval by Australian regulatory authorities at a price of A$3.75 per share;
- 33,185,230 (9.8 per cent) will be sold subject to approval by both Australian regulatory authorities and Tower Australia shareholders at a price of A$3.75 a share.
The value of Tower Australia's gross assets at 31 March 2008 was A$3,486.0 million ($4479 million) in the six month period to 31 March 2008. Tower Australia's profits were A$30.9 million.
GPG's two directors on the Tower Australia board, Dr Gary Weiss and Mr Michael Jefferies, will resign immediately.
- NZPA
