Monday 14th July 2003
|Text too small?|
GPG has applied to the Takeovers Panel for an exemption as its underwriting agreement could see that it temporarily breaches the 20% threshold.
The company has said that if it breaches this limit it will sell down its stake to the allowed limit of 13.75%
However, Hanover says that the panel should ensure GPG complies with the Code for the benefit of other Tower shareholders.
"Given that GPG told the NZX that it would be limited to 13.75%, we question its motive in seeking an exemption to exceed a 20% shareholding in Tower," Hanover Group chief executive Kerry Finnigan says.
He says Hanover would await the Takeovers Panel decision with interest, and believes that the panel would see the benefit of limiting GPG's underwrite to a specific level.
Hanover Group has purchased a further 2% of Tower bringing its shareholding up to 6.3%.
Hanover has also reaffirmed its intention to be a long term shareholder in Tower and has no objection to working with other parties, including GPG, in a collaborative fashion to assist the company.
Finnigan said suggestions by GPG that Hanover was not intending to be a long term shareholder were baseless and self-serving. "We are in there for the longer term, which is why we have increased our shareholding, and look forward to participating actively in the underwrite and in the reconstruction of Tower's financial and operational position."
No comments yet
Tower to return 'initial' $70M of capital from sale of life business
Tower shares fall to 2-month low as licensing requirements may weigh on capital returns
Tower's licensing talks with RBNZ may push up minimum solvency requirements
Tower names Hancock as new chief executive, replacing Flannagan
Tower posts first-half profit as asset sales reap gains of $51.4 mln
Fidelity Life acquires most of Tower's life insurance business
Flannagan to leave Tower after strategic review, asset sales
Tower FY profit jumps 67%, to return $120M to shareholders; shares jump
Tower sells medical insurance unit to nib for $102M
Stiassny joins Tower board as questions linger over strategy