Sale of Shareholding in Tower

RNS Number : 9261A

Guinness Peat Group PLC

07 August 2008

 



GUINNESS PEAT GROUP PLC

SALE OF SHAREHOLDING IN TOWER AUSTRALIA GROUP LIMITED

8 August 2008 - Guinness Peat Group plc ('GPG') today announced that it has agreed to sell to The Dai-ichi Mutual Life Insurance Company its entire 29.7% shareholding (100,351,041 shares) in Tower Australia Group Limited ('Tower Australia'). 

The transaction consists of three tranches:

• 50,289,979 (14.9%) shares have been sold unconditionally at a price of A$3.75 per share

• 16,875,832 (5.0%) will be sold subject to approval by Australian regulatory authorities (Foreign Investment Review Board and Australian Prudential Regulation Authority) at a price of A$3.75 per share

• 33,185,230 (9.8%) will be sold subject to approval by both Australian regulatory authorities and Tower Australia shareholders at a price of A$3.75 per share

The value of Tower Australia's gross assets at 31 March 2008 was A$3,486.0 million (£1,628.0 million), and in the six month period to 31 March 2008 Tower Australia's profits were A$30.9 million (£14.4 million).

GPG is a strategic investment company. The sale proceeds are in the form of cash which will be utilised in GPG's ongoing business.

GPG has advised Tower Australia that its two representatives on its Board, Dr Gary Weiss and Mr Michael Jefferies will resign effective immediately.

A joint announcement in relation to the transaction has been made by Tower Australia and The Dai-ichi Mutual Life Insurance Company to the Australian Securities Exchange.

Chris Healy

Legal Director

Guinness Peat Group plc

Tel: [phone]

 

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