Offer for Tower Ltd NZ

2 May 2008 14:51

Guinness Peat Group PLC02 May 2008 Guinness Peat Group plc Partial Offer for shares in Tower Limited in New Zealand The following is the text of an announcement made today by Guinness Peat Groupplc ("GPG") on the New Zealand Stock Exchange ("NZSX") in respect of a partialcash offer at NZ$2.30 (£0.90) per share to purchase up to 29,342,450 (15.30%) ofthe issued ordinary shares of Tower Limited ("Tower"), a New Zealand companyfocused on the risk insurance and wealth management market in New Zealand (the "Offer"). Before the Offer GPG held 19.7% of Tower's issued shares. On thesuccessful conclusion of this Offer GPG would therefore hold 35% of the issuedshare capital of Tower. The gross assets of Tower at 30 September 2007 were NZ$1,546 million (£606million) and the profits from continuing operations before taxation for thatyear were NZ$55 million (£22 million). J R RussellCompany SecretaryGuinness Peat Group plcTel: +44 207 484 3370 2 May 2008 ----------------------------------------------------------- "GPG Partial Takeover Offer Guinness Peat Group plc ("GPG") has advised that a wholly-owned subsidiary, GPGTwenty One Limited, intends to make a partial offer under the New ZealandTakeovers Code to purchase 15.30% of the ordinary shares in TOWER Limited ("TOWER") at a price of $2.30 per share. GPG currently controls, through awholly-owned subsidiary, 19.70% of TOWER. The offer will provide TOWER shareholders an opportunity to sell their shares ata price that is a 11.1% premium to the last TOWER closing price and a 16.3%premium to the 1 month volume weighted average price. GPG Executive Director Tony Gibbs said "from GPG's perspective, as a result ofthe spin-offs of Tower Australia Group Limited and Australian Wealth ManagementLimited, GPG's investment in TOWER had reduced considerably in size. The offerwould give GPG the ability to invest more money in TOWER and increase the valueof its investment back up to a more optimal investment size more consistent withother investments in its portfolio." Mr Gibbs also said "he expected the offer to be extremely well supported by bothlarge and small shareholders. In particular small shareholders, many of whomhold uneconomic parcels, will have the opportunity to sell their shares at apremium price without incurring disproportionately large brokerage costs todispose of their shares. The reduction of the number of small size shareholderswould in turn assist TOWER to reduce the administrative costs of maintaining andcommunicating with such a large number of shareholders." GPG has no current plans to appoint any further TOWER directors if it achievesits shareholding of 35%. GPG is confident that it will receive the market support it requires for thisoffer to be successful. In order for the offer to be successful GPG requires: • acceptances of 15.3% or 29,342,450 TOWER shares; and • approval by TOWER shareholders. Goldman Sachs JBWere (NZ) Limited is acting as broker to GPG in relation to thisoffer. For further information contact Tony Gibbs on +64 21 991 327. 2 May 2008" ENDS This information is provided by RNS The company news service from the London Stock Exchange